SDG 8: Decent Work and Economic Growth | SDG 12: Responsible Consumption & Production
Institution: Ministry of Finance | Government of Mizoram
The Central Government has announced sweeping GST rationalisations in Mizoram, targeting key local sectors including GI-tagged spices, processed fruits, bamboo & cane products, handicrafts, and tourism services.
Major tax changes include reducing GST on processed Mizo Birdβs Eye Chilli, ginger and turmeric from 18% to 5%, and placing processed fruit products (juice, pulp, etc.) under a 5% slab. All bamboo and cane items will also now attract only 5% GST, helping uplift rural artisans and eco-product businesses.
To support tourism, hotel rooms priced up to βΉ7,500/night will also be taxed at 5%, making stays more affordable for travellers and enhancing Mizoramβs appeal as a destination.
These changes are intended to lower input and product costs, improve competitiveness, stimulate domestic demand, and generate livelihood opportunities across agriculture, crafts, and tourism sectors in Mizoram. The reforms dovetail with the stateβs strengths in GI products, eco-tourism potential, and traditional craftsmanship.
By aligning GST policy with the economic fabric of the state, these reforms demonstrate a differentiated, place-sensitive approach to taxation. They seek to balance revenue interests with inclusion, helping to unlock value in regional value chains and mitigate regional inequality.
Relevant Question for Policy Stakeholders: How can these tax cuts be sustained fiscally while being complemented by capacity-building, market access, and infrastructure support to ensure lasting impact?
Full release: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2178461