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GST rates: 40% `Sin tax` to be imposed on tobacco products
The GST Council on Thursday finalised the four tax rate slabs of 5 percent, 12 percent, 18 percent and 28 percent.
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.
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.
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.
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.