Why tobacco, cigarettes, aerated drinks are likely to become costlier in India
December 04, 2024 by firstpost.com
Why tobacco, cigarettes, aerated drinks are likely to become costlier in India
The Group of Ministers proposed raising the tax on aerated drinks, cigarettes, and tobacco to 35% from the current 28% under the GST. The decision aims at revising tax rates for 148 items, impacting prices while aiming to increase revenue. Recommendations will be reviewed by the GST Council, impacting companies like ITC and Varun Beverages. The GoM also suggested changes for ready-made garments, luxury items, and health insurance premiums, aligning tax rates with product prices. Prior recommendations in October included lowering tax rates for packaged drinking water and bicycles, while raising them for expensive shoes and watches. The GST Council will discuss these proposals on December 21.
7.10% of the adult population are current smokers. There are approximately 72.7 million current smokers in India 12.80% of men are current smokers but only 1.10% of women.
SOURCE: GSTHR
