Experts call for higher ‘Sin Tax’ on tobacco, similar products ahead of GST council meet

New Delhi: Ahead of a crucial GST Council meeting on tax rationalisation health and economic experts have called for a higher ‘Sin Tax’ on tobacco and similar harmful products to curb their consumption and bolster public health and the economy.

            The experts endorsed the recent recommendation by the Group of Ministers (GoM) for a 35 per cent ‘Sin Tax’ slab on tobacco products, up from the current 28 per cent.

            They argued that increasing taxes on tobacco would not only save lives but also strengthen the economy and advance the vision of a healthy and Viksit Bharat.

            They emphasised that this step would curb tobacco consumption and fund preventive healthcare initiatives.

            The GST Council, chaired by Bihar Deputy Chief Minister Samrat Chaudhary, is scheduled to meet on December 21 to deliberate on the GoM’s proposals.

            These include introducing a new 35 per cent slab for Sin Goods like tobacco and aerated drinks while reducing GST rates on essential goods like notebooks, bottled water and bicycles as well as lowering premiums on health and life insurance.

            Experts argue that the increased revenue from Sin Goods could help offset these rate cuts, offering relief to citizens while advancing public health goals.