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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
GS III : Government policies and interventions for development in various sectors and issues arising out of their design and implementation