News: Government want 28% tax on all Tobacco products

2 years ago sarkariadmin 1

Health ministry take a action to lower the consumption of tobacco products to maintain health issue, the health ministry has attempt to tax all such products, including Bidis, at 28% as well as force higher under the new goods and services tax regime.

Salute the step taken by finance ministry to keep aerated drinks (contains carbonated water) , tobacco products, luxury cars and Pan Masala in the ‘consumption is considered unhealthy’ category, the health ministry suggested that the impose under the goods and services tax should be high enough to make these products too expensive over a period of time.

Recently health ministry issued a memorandum regarding tobacco consumption rate, it suggested that exemptions from the high taxation norms should not be extended to industries with low turnover such as Biddi manufactures as this will allow them to manipulate norms.

“Taking advantage of this exemption (state of being free from an obligation ), biddi manufacturers closed bigger units and started producing on small scale under different names in a clandestine manner, resulting in huge tax evasions,” the memorandum said as per issued by health ministry.

The ministry, which has favoured higher taxes on all tobacco products for long and now Government want 28% tax on all Tobacco products, also highlighted that tiered tax structure for cigarettes needs to be done away with as these slabs are open to manipulation for products substitution and promotion.

Last year in February, health minister J P Nadda had also written to finance minister Arun Jailey pressing the need to impose A ‘sin tax is an excise tax that is levied on products and services considered to be detrimental for health or society such as alcohol, tobacco.

J P Nadda had also suggested considering a proposal to earmark the proceeds from the additional surcharge to fund health schemes like the Rashtriya Swastha Bima Yojana.