Lower GST on household insecticide products and last-mile accessibility necessary to curb mosquito-borne diseases, note EY–HICA report

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EY – HICA report recommends reducing GST on household insecticides from 18% to 5% with clear classification under the GST framework.
Policy change could effectively help combat vector borne diseases, improve rural access, curb unsafe unregulated products and strengthen preventive healthcare outcomes.

New Delhi / Mumbai, 23 April 2026: Household insecticides such as liquid vapourisers, coils, and 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. Launched on Thursday, a joint EY–Home Insect Control Association (HICA) report titled “GST rationalization for household insecticides: A public health imperative” examines how the current 18% 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% rate in line with other essential hygiene and health‑protective products.

The EY‑HICA report highlights that household insecticides serve as a first line of defense against diseases such as malaria, dengue and chikungunya, particularly at the household level where large‑scale interventions like indoor residual spraying and bed nets face practical and behavioral limitations. Despite this critical preventive role, the category continues to be taxed at 18%, while several essential health and hygiene products were reduced to a 5% or nil GST rate post September 2025.

While urban penetration of household insecticides stands at 92–99%, rural adoption remains limited at 64–73%, reflecting affordability constraints. The EY‑HICA report notes that this gap disproportionately affects low‑income and rural households that are most vulnerable to vector‑borne diseases, potentially limiting consistent use of quality‑assured products.

Talking about the urgent need for GST relief, Jayant Deshpande, Secretary and Director, Home Insect Control Association (HICA) said, “Household insecticide products like liquid vapourisers are essential for preventing mosquito‑borne diseases such as malaria and dengue. However, these products are currently taxed at 18%, making them less affordable for consumers. At the same time, illegal players continue to sell unregulated products without paying taxes, creating an uneven playing field for compliant companies. A reduction in GST would not only support the organised sector but also make these essential products more accessible to households, strengthening public health outcomes. Affordable products post GST relief may increase government revenue due to higher consumption.”

The EY‑HICA report also highlights that the current GST framework widens the price differential between regulated household insecticides and substandard, unregulated alternatives that are often misclassified under lower tax slabs. This creates market distortions, poses consumer safety risks and leads to revenue leakage.

To address these issues, the EY‑HICA report recommends rationalizing GST on household insecticides to 5%, alongside introducing a clear and distinct product classification under the GST rate schedule. These measures are expected to improve affordability, discourage unsafe substitutes, promote formalization and strengthen India’s disease‑prevention ecosystem.

Commenting on the potential impact of reform, Bipin Sapra, Tax Partner, EY India said, “A reduction of GST to 5% can materially improve access to safe and regulated household insecticides, particularly in rural and high‑risk regions. Improved affordability could drive wider adoption, strengthen last‑mile protection against vector‑borne diseases and support India’s broader preventive healthcare objectives. While some input tax credit accumulation may arise due to an inverted duty structure, the public‑health and affordability benefits of rationalisation clearly outweigh the operational challenges for industry.

From a public policy perspective, the report suggests that improving affordability and access to household insecticides can complement national disease‑control programmes by strengthening last‑mile protection and reinforcing community‑level prevention, particularly in endemic regions.

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About HOME INSECT CONTROL ASSOCIATION (HICA)

HOME INSECT CONTROL ASSOCIATION (HICA) is a premier organization established 1995 in Mumbai to give impetus to the domestic Home Insecticides sector, to facilitate the members of the association for the overall safety of the environment and to educate the public about the healthy and proper use of the home insecticides for a pest free life.

For more details, visit https://www.hica.co.in/