Kolkata/ New Delhi: With Banks across the state allegedly refusing to accept coins, Bakery businesses are in a fix, claimed Idris Ali, secretary of the joint action committee of bakeries in West Bengal.

“Christmas Cake Business is a flop show this year due to two reasons. Firstly, the banks are not accepting coins when the bakeries are going to deposit them. Secondly, because of Goods and Services Tax (GST),” Ali told Maeeshat.

The GST Council held its 23rd meeting last month recommended widespread changes in the GST. The council has decided to keep the highest 28% tax on luxury and sinful items as a result 177 items have been shifted to the 18% bracket.

According to sources, the cost of cakes is likely to increase in the near future.

Goods under 18 % GST slab as follows:

Most items are under this tax slab which include footwear costing more than Rs 500, Trademarks, goodwill, software, Bidi Patta, Biscuits (All categories), flavoured refined sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces, soups, ice cream, instant food mixes, mineral water, tissues, envelopes, tampons, notebooks, steel products, printed circuits, camera, speakers, Kajal pencil sticks, Headgear and parts thereof.

“Our bakeries, which used to earlier brim with workers, is experiencing scarcity of workers because bakery owners are unable to pay wages workers due to skyrocketing prices of fruits. 60 to 70 percent Christmas Cake sales dipped this year,” added Ali.

While the small and medium enterprises already burdened with GST, which has pushed several bakery products to the 18 percent tax bracket from five percent, the coin issue is like a double whammy for the sector, Ali pointed out.