GST rates: 40% 'Sin tax' to be imposed on tobacco products

Zee Media Bureau

New Delhi: The GST Council on Thursday finalised the four tax rate slabs of 5 percent, 12 percent, 18 percent and 28 percent.

Four-tier #GST rate structure of 5, 12, 18, 28 per cent decided by the all-powerful GST Council. — Press Trust of India (@PTI_News) November 3, 2016

While the mass consumption items will be taxed at 5 percent, Finance Minister Arun Jaitley said 28 percent tax will be applied on most of the white goods.

5% duty will be levied on mass consumption items used by common people; 2 #StandardRates of 12%, 18% will be there in #GST: #FM. — Press Trust of India (@PTI_News) November 3, 2016

However, tobacco products will be hit the most with the government imposing 40 percent six tax.

Further, the Council has also imposed 40 percent sin tax on Pan Masala and soft drinks.

Luxuary cars, tobacco, aerated drinks to be levied with cess which with clean energy cess will be used for compensation: #FM. — Press Trust of India (@PTI_News) November 3, 2016

Earlier, Consumer Voice, a voluntary action group, had urged the GST Council to levy the highest, "sin tax" of 40 percent on all forms of tobacco products, including cigarettes, beedis and smokeless tobacco.

Luxury cars are also set to cost more as the GST Council has imposed a 65 percent tax.