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GST Council increases cess on cigarettes, govt set to get extra Rs 5000 cr

GST Council increases cess on cigarettes, govt set to get extra Rs 5000 cr

New Delhi, Jul 17 (UNI) The Goods and Services Tax (GST) Council today raised the cess on cigarettes over the peak rate of 28 per cent, as the effect on their prices was lower under the new taxation regime, than earlier. The fixed cess has been hiked between Rs 485 and 792 per thousand sticks and the specific cess on the basis of the length of cigarettes will be effective from midnight today. After the meeting of the Council through video conferencing, Finance Minister Arun Jaitley said the increase will give the government Rs 5,000 crore more in revenue, which would be used for compensating states. But, he said the consumer prices would not change as the increased tax incidence would only take away the windfall profits the manufacturers were earning. According to Mr Jaitley, as per the Council decision today, the peak GST rate of 28 per cent and ad valorem cess of 5 per cent would remain in place. Mr Jaitley said, “It was noted in the first 15 days of the GST implementation that when the rate on cigarettes was translated, the cascading effect of taxes was not factored in. We noted that cigarette companies were getting windfall profit from reduction in cigarette prices.” Mr Jaitley said the case of non-increase of cess of Rs 5,000 crore additional tax revenue would have gone to the manufacturers. The GST Council had fixed 28 per cent as the top rate for cigarettes in May 2017. A five per cent ad valorem cess was levied on top of it and Rs 1,591 per thousand sticks as fixed cess on both filter and non-filter cigarettes of not exceeding 65 mm length. The cess rate varied from Rs 2,126 to Rs 4,170 for cigarettes of different lengths. But, this rate was lower than the pre-GST tax incidence and the choice before manufacturers was either to pass on the lower taxes to consumers by way of cutting rates or pocketing the windfall. The Minister said the GST Council will meet in the first week of August to review the progress of the implementation of GST, which was rolled out on July 1. UNI ADP RJ SHK 2214

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Cong releases 2nd list of 13 candidates for Gujarat

Cong releases 2nd list of 13 candidates for Gujarat

New Delhi, Nov 20 (UNI) The Congress on Monday night released its second list of 13 candidates for the assembly elections in Gujarat which includes names of Pradyumansinh Jadeja from Abdasa and Aadam B.

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Govt approves visa for 33 Bohra children from Pakistan

Govt approves visa for 33 Bohra children from Pakistan

New Delhi, Nov 20 (UNI) Indian government has decided to issue visa for 33 Bohra children from Pakistan, External Affairs Minister Sushma Swaraj said here on Monday.

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Innovation are shaping space industry: ISRO

Innovation are shaping space industry: ISRO

New Delhi, Nov 20 (UNI) Space Commission and Chairman Indian Space Research Organisation (ISRO) Chairman AS Kiran Kumar on Monday said innovations are shaping the Space Industry and the endeavour should be to provide access of advantages of space to common people.

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SC refuses to interfere in 'Padmavati' release

SC refuses to interfere in 'Padmavati' release

New Delhi, Nov 20 (UNI) The Supreme Court on Monday refused to interfere in the release of the Hindi film "Padmavati.

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Sri Lankan PM coming tomorrow; to meet Modi on Nov 22

Sri Lankan PM coming tomorrow; to meet Modi on Nov 22

New Delhi, Nov 20 (UNI) Prime Minister of Sri Lanka Ranil Wickremesinghe is arriving here tomorrow on a two-day visit during which he will hold talks with Prime Minister Narendra Modi.

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Decks cleared for Rahul's elevation

Decks cleared for Rahul's elevation

New Delhi, Nov 20 (UNI) Decks cleared on Monday for the much awaited elevation of Congress vice-president Rahul Gandhi to the post of party president with the Congress Working Committee giving its nod to the schedule for election of the party president with issuance of notification on December 1.

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Electric vehicles economically, practically viable as mode of transport: Gadkari

Electric vehicles economically, practically viable as mode of transport: Gadkari

New Delhi, Nov 20 (UNI) Public transport running on biofuel and electricity is the focus of the government as it would be environment-friendly and cost effective, Union Road Transport, Highways, Shipping, Water Resources, River Development and Ganga Rejuvenation Minister Nitin Gadkari said.

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