Govt may subsume sin goods cess into GST
The government is planning to include sin goods in the Goods and Services Tax (GST). The government has taken this decision while reimbursing the states after the expiry of the period of five years of GST reimbursement.
Sin goods are those goods on which the government levies sin tax. It is a special tax levied on goods and services considered socially harmful.
For example- Taxes on alcohol, tobacco products etc. due to public health purposes. These taxes help reduce many health risks.
Earlier, the government had constituted a nine-member committee to propose a comprehensive tax policy on all tobacco products from a public health perspective.
The tax burden on sin goods in India is less than the minimum 75% tax burden recommended by the World Health Organization (WHO).
Source – The Hindu
