GST Council should consider lowering tax on household insecticides to 5 pc: EY-HICA report

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New Delhi: The GST Council should consider reducing tax on household insecticides to 5 per cent, from 18 per cent currently, to combat vector-borne diseases, and strengthen preventive healthcare outcomes, a report by EY-HICA said on Friday.

Household insecticides such as liquid vapourisers, coils, aerosols, continue to play an important role in India’s preventive health ecosystem, particularly at the household level where protection against vector-borne diseases remains uneven.

The joint report by EY-Home Insect Control Association (HICA) examines how the current 18 per cent GST rate affects affordability, access and usage of these products, especially among vulnerable and high-risk populations, and evaluates the public-health case for realigning their tax treatment to a lower 5 per cent rate in line with other essential hygiene and health-protective products.

“Despite their strategic importance and amid the GST 2.0 rationalization, where several health oriented FMCG and pharmaceutical essentials have been repositioned into lower tax brackets, the current treatment of household insecticides may be viewed as not fully aligned with their public health relevance,” said EY India Partner and National Leader, Indirect Tax, Bipin Sapra.

HICA Director Jayant Deshpande said rationalising the GST rate of household insecticides to 5 per cent, along with providing clear classification within the GST schedule, will improve affordability, discourage the proliferation of substandard products and support greater formalization of the sector.


Vector-borne diseases, such as malaria, dengue, chikungunya and several others continue to pose a significant public health challenge in India.

The household insecticides industry in India reflects its growing importance, with market penetration already at 92-99 per cent in urban areas and 64-73 per cent in rural areas.

The household insecticide market expanded from Rs 7,147 crore in 2023 to Rs 8,138 crore in 2025, the report said.



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