Middle class may get the possibility of huge increase in the price of these things including cigarettes, alcohol

Central government GST is considering major changes in slabs. If the proposal to start health cess and clean energy cess by removing the company cess in GST is passed, then the prices of many things may increase drastically. If this happens, tobacco products such as cigarettes and vehicles can be expensive. Health cess will apply to ‘Sin Goods’. Sin Goods includes cigarettes, alcohol, luxury things and vehicles. The government charges the highest tax on Sin Goods as compared to other things and they come in the highest 28 percent brackets of GST.

Luxury car and coal can be applied clean energy cess

In addition, clean energy cess can be applied to expensive luxury cars and coal. According to a report by NDTV Profit, sources said that a committee of ministers (GOM) on the Compassion Cess, which is being chaired by Union Minister of State for Finance Pankaj Chaudhary, can discuss the matter later this month. The group of ministers has already reached close to two new taxes, as most states are expected to accept more taxes on things considered harmful.

What relief will the middle class get

Let us tell you that there is also a consideration to reduce the existing 4 slabs of GST to 3. The GST Council can eliminate 12 percent GST slab. The government can consider shifting the things and services coming in 12 percent GST slab to 5 percent and 18 percent slabs. However, in this shifting, it is to be considered quite a lot that what things have to be inserted into a 5 percent slab and which things have to be put in 18 percent slab. Experts believe that the government can make changes keeping in mind the middle class.

Latest business news