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It might have adverse consequences for the environment explained in the article.

Why GST adversely affect environment ?

• The tax rate on recycled plastic shooting up from 5.5% to 18% post-GST, ragpicking as a livelihood is turning unviable.
• After GST came in, the 18% tax on waste plastic has sparked a downward spiral in prices in the recycling markets.
• Plastic recyclers, faced with the new tax, are protecting their margins by slashing prices at which they buy from thousands of waste managers and ragpickers.
• The price of mixed plastic is down from Rs. 19 per kg to around Rs. 13 now.
• The lower demand, coupled with the “sudden introduction of confusing taxes” has resulted in reduced purchases of waste.

Source : The Hindu

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