From spices to tourism, GST rejig to boost Mizoram`s economy
The recent GST 2.0 reforms will provide widespread benefits to Mizoram’s economy by lowering GST on its key items, such as Mizo Bird’s Eye Chilli, ginger, turmeric, bamboo and cane products, processed fruits, and tourism services, the government said on Monday.
Lower tax rates will reduce costs, boost domestic consumption, and strengthen the competitiveness of the products, delivering benefits to farmers, bamboo artisans, and tourism operators, an official statement said.
The reforms reduce GST on these spices, bamboo and cane products, processed fruits, and tourism services to 5 per cent, also promoting branding, value addition, strengthening export competitiveness, and creating jobs in rural and semi-urban areas.
Mizo Bird’s Eye Chilli, a GI-tagged organic crop, supports household incomes and is entering new global markets. Small food processing and pickle units linked to the chilli also provide employment opportunities, typically engaging around 10 to 12 persons per unit, the release noted.
Mizoram produced approximately 10,918 metric tonnes in 2020–21, with a study conducted in Aizawl district estimating an average gross income of Rs 1.57 lakh per hectare.
Mizoram ranks as India's third-largest producer of passion fruit. Passion fruit processing has created new entrepreneurial opportunities in juice and concentrate production, offering additional income for farmers and women’s groups.
Reducing GST on processed fruit products to 5 per cent will benefit small-scale processing units, create jobs, and enhance marketability.
Bamboo covers nearly 51 per cent of the state's land and supports handicrafts and cottage industries. A uniform rate of 5 per cent GST on bamboo furniture and crafts will improve the affordability of bamboo products and enhance Mizoram’s competitiveness in the national handicraft market.
With rooms up to Rs 7,500 now taxed at 5 per cent and lower input costs for service providers, the reforms will make travel to Mizoram more affordable for tourists in the state's thriving tourism industry.
