Firecracker prices see 15% hike, courtesy GST

Sukhmeet Bhasin

Tribune News Service

Bathinda, October 16

The prices of firecrackers have witnessed an increase of 15 per cent this year. The hike has been attributed to the implementation of the Goods and Service Tax (GST).

As per the old tax system, firecracker manufacturers were paying 14.5 per cent VAT. But they had exemption from the 12 per cent central excise tax as their annual turnover was below Rs 1.5 crore. Now, the Union Government has imposed 28 per cent GST on firecrackers.

The major hike has been witnessed in the prices of rocket shots, dynamite bombs, pop up and various other firecrackers. Dynamite bomb were sold for Rs 60 per box last year. This year, it is being sold for Rs 85 per box. Pop up, which is popular among children, were sold for Rs 6 per box last year. Now, its cost is Rs 10.

Deepak Bansal, a firecracker trader, said the price of firecrackers had witnessed an overall hike of 15 per cent this year. He said though no change had been seen in the prices of few crackers, the prices of some crackers had witnessed a hike of 35-40 per cent.

Firecracker seller Rohit Garg said presently, the major issue for the firecracker traders was the licence for selling crackers.

He said of the 162 licences, only 34 had been given to sellers. He added that due to the new directions, traders were ready to sell their cracker consignments at throwaway rates as they had ordered them in advance.

“We will suffer losses if our whole firecracker consignment remained unsold as we can’t keep them for the next year. We are left with no option but to sell our stock at a low price to the sellers who have got the license,” he added.

He said since the prices of crackers had increased and the HC had restricted the time for bursting of crackers, the sales were also expected to be low. “The sellers who have got the licenses are worried about their stock. They may not invest more money for buying more stock,” Rohit added.