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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.