Govt proposes 5% and 18% GST slabs, tobacco & pan masala at 40%: Reports
The Indian government has proposed a significant overhaul of the Goods and Services Tax (GST) structure, recommending a dual tax slab system of 5% and 18%, according to reports citing government sources. Additionally, the reports suggest that sin goods like tobacco and pan masala will be slapped with a hefty 40% GST.
The proposal, which has reportedly been sent to the GST Council, aims to simplify the current GST structure and reduce the complexity associated with the existing multiple tax slabs. The dual slab system is expected to benefit consumers, especially in the lower and middle-income segments, who will benefit from reduced taxation on essential goods and services.
The 5% GST slab is likely to be applicable to essential goods and services such as food, healthcare, education, and housing, which are critical to the daily lives of citizens. This slab is expected to provide relief to consumers who are currently paying higher rates of GST on these items.
The 18% GST slab, on the other hand, is likely to be applicable to non-essential goods and services such as luxury items, electronics, and high-end consumer goods. This slab is expected to generate higher revenue for the government, which can be used to fund public welfare schemes and infrastructure development projects.
The proposal to increase the GST rate on sin goods like tobacco and pan masala to 40% is part of the government’s efforts to discourage their consumption and reduce the public health risks associated with them. Tobacco and pan masala are considered harmful to human health and are responsible for a significant number of preventable deaths and illnesses every year.
The government’s proposal to increase the GST rate on these sin goods is expected to have a positive impact on public health, particularly in the long run. By making these products more expensive, the government hopes to reduce their consumption and encourage people to adopt healthier habits.
The proposal has been welcomed by many experts, who believe that it is a step in the right direction towards simplifying the GST structure and reducing the complexity associated with it. “The dual slab system is a good idea as it will simplify the GST structure and make it easier for consumers to understand,” said an expert. “The increased GST rate on sin goods is also a good move as it will help reduce their consumption and promote public health.”
The opposition, however, has criticized the proposal, saying that it is a move to increase the burden on the common man. “The government is trying to increase the burden on the common man by increasing the GST rate on essential goods and services,” said an opposition leader. “The proposal is anti-people and anti-poor, and we will oppose it tooth and nail.”
The government, on the other hand, has defended the proposal, saying that it is a step towards simplifying the GST structure and promoting public health. “The proposal is a step towards simplifying the GST structure and making it more transparent and efficient,” said a government spokesperson. “The increased GST rate on sin goods is a move to promote public health and reduce the public health risks associated with them.”
The proposal is now pending approval from the GST Council, which is expected to take a final decision on the matter soon. The decision is likely to have a significant impact on the economy and consumer behavior, and it remains to be seen how the proposal will be received by the public.
News Source:
https://x.com/PTI_News/status/1956324453438406706
