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ai for exam proctoring ✌️【365vc.net】✌️Beginner or expert? Our platform makes stock investing easy with high monthly gains. Start now!According to them, the Group of Ministers’ recommendation of a new slab with a tax rate of 35% for tobacco products and carbonated or aerated beverage is contrary to the objective ofGSTrate rationalization, as with this, GST will now have an additional layer of tax slab.It is also being mentioned in sections of the press that apart from proposing changes to the GST rate on tobacco and aerated beverages, the GoM is also deliberating revisions to tax slabs on a range of other goods, including ready-made garments, and luxury items like handbags and watches.
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Countries like the UK and France have adopted a sugar-layered tax approach, i.e.
high sugar/high tax and low sugar/low tax.
Growinghealthconsciousness in India has seen consumers switching to lower sugar content products, creating a new market for reformulated aerated beverages.
However, a uniform tax on sugar carbonated drinks disincentivises producers frominvestingand innovating to produce products with low sugar content due to the high tax rate.”A layered tax approach will enable producers to invest in manufacturing these products, leading to morejobs, and consequently more revenues for the government.
“It will also bolster innovation, promote public health, while increasing revenues for the government.
Higher costs would also lead to reduction in the manufacture and consumption of aerated drinks and result in an overall reduction of the government revenues,” he added.Talking about the proposed increase in GST on cigarettes, he said the proposed 35% slab is excessive, as consumers, already reeling under inflation, are likely to shift to cheaper products or the grey market.
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