Thomas IsaacThiruvananthapuram: Kerala finance minister Thomas Isaac has warned that eating out will be costlier after the implementation of the Goods and Service Tax (GST) with an account of 13 percent increase in food prices. This is due to the 18 percent tax slab under GST.
He warned traders that broiler chicken should be sold only at Rs 87 per kilo from Sunday, and asserted that legal action will be taken if they failed to act so.
The government move is aimed at forcing hotels to bring down food prices.
The minister also announced a reduction in prices at Supplyco for 60 items in a bid toprevent escalation of prices using GST as an excuse.
Isaac said broiler chicken trade and price control are in the hands of a gang located in Tamil Nadu, and warned that the government will destroy them. “No one should think they can mock the government after raising prices at their will and pleasure. Traders can sell chicken only if they are willing to sell at Rs 87 per kg from Sunday,” Isaac said.
Isaac expressed fury as he warned the traders: “Do not try to rub the government the wrong way. I'm cutting short for now.”
He urged the people to take an initiative and end the trend of selling at prices as wished by the traders.
Broiler chicken prices have to drop from Rs 103 to 87 as a 14.5 percent Value-Added Tax has been removed.
He said the work of Kerala State Poultry Development Corp. (Kepco) will be widened to counter the mafia. A plan will be drafted to assist Kudumbasree in poultry farming in every panchayat, with the idea of achieving self-sufficiency.
The minister said non-AC restaurants will levy 12 percent GST only after reducing prices by 5 percent. AC restaurants will cut prices by 8 percent before charging GST.
He said traders should be willing to sell low-priced items at such prices itself without bothering about MRP. Government will compensate for six months' stocks.
He accused theater owners of trying to reap profits using GST as a pretext. There will be strong action against them also.
Poultry Farmers and Traders Association, meanwhile, said chicken prices will drop in two or three weeks as production increases.
Read more: Latest GST news | Education not expensive under GST: Center
