GST Reform for Vector‑Borne Disease Prevention

Affordable household insecticides critical for vector‑borne diseases

In rural India, household insecticide use is 64%-73%, much lower than 92%-99% in urban regions. 


In brief

  • The report  suggests reducing GST on household insecticides from 18% to 5% to improve affordability and access.
  • Rural households face limited access to insecticides, which reduces disease prevention at the household level.
  • Clear GST classification and tax rationalization can assist in curbing unsafe products and strengthening India’s preventive healthcare..

Household insecticides play a crucial role in India’s fight against vector-borne diseases, especially at the household level where protection remains inconsistent. A joint report by EY and the Home Insect Control Association (HICA), titled “GST rationalization for household insecticides: A public health imperative,” highlights the urgent need to reduce the Goods and Services Tax (GST) on these products from 18% to 5%. This change aims to improve affordability of household insecticide, particularly for vulnerable rural populations which have limited resources for malaria, dengue and chikungunya prevention.

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The report reveals a significant disparity in the use of household insecticides between urban and rural areas, with urban penetration at 92%–99% compared to 64%–73% in rural regions. This gap is largely due to affordability challenges, which limits consistent use of safe and regulated insecticides and other products among low-income households. Despite their importance as a first line of defense, household insecticides remain taxed at a higher rate than many other essential health and hygiene products, where rates were reduced to 5% or nil GST in September 2025.
 

The report calls for clear product classification under the GST framework to address these issues, reduce market distortions and promote formalization.
 

Furthermore, the report emphasizes that reducing GST on household insecticides will not only improve affordability but also encourage wider adoption of quality-assured products. This is critical in rural and underserved areas where vector-borne diseases are most prevalent and where access to formal healthcare infrastructure is limited. By lowering the tax burden, manufacturers and distributors can better reach these communities, providing safer and more effective products.

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The economic benefits extend beyond public health; a more formalized and regulated market can lead to increased government revenues through improved tax compliance and reduced leakage. Additionally, stimulating demand for household insecticides can incentivize innovation and investment in the sector, driving the development of more efficient and environmentally friendly products.
 

Importantly, the report also highlights the role of awareness and education in enhancing the impact of this tax reform. Making household insecticides affordable is only one part of the solution; educating communities about proper usage and the risks of unregulated products is essential to achieving sustained disease control. Collaborative efforts between government agencies, industry players and public health organizations are necessary to facilitate the benefits of GST rationalization translating into real-world health improvements.
 

The report highlights the economic and health impacts this change can bring, offering actionable insights for policymakers, industry stakeholders and communities alike. 

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Summary

Reducing GST on household insecticides can improve affordability and access, especially in rural areas. This change in tax would enhance protection against vector-borne diseases such as malaria and dengue by promoting safe, regulated products. Addressing market challenges due to the current tax structure and implementing clear product classification can support public health goals.


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