Swadeshi Jagran Opposes 35% GST On Sin Goods

Another slab in GST, in the name of luxury and sin goods is primarily a bad idea, which will de-feat the very efficiency principle of taxation - Ashwani Mahajan, SJM national co-convenor

New Delhi: Swadeshi Jagran Manch (SJM) has dubbed the proposal to introduce 35 per cent GST on ‘sin goods’ like aerated beverages and tobacco products as a ‘bad idea’ as it would lead to smuggling and loss of revenue for the country.

Besides, other bodies like All India Consumer Products Distributors Federation (AICPDF) and Indian Sellers Collective -- an umbrella body of trade associations and sellers across the country -- have raised concerns on the recommendations of the GoM on GST rate rationalisation. Earlier this month, the Group of Ministers (GoM) recommended a special rate of 35 per cent on sin goods like aerated beverages, cigarettes, tobacco and related products.

The GoM headed by Bihar Deputy Chief Minister Samrat Chaudhary also suggested rationalisation of tax rates on apparel. “Another slab in GST, in the name of luxury and sin goods is primarily a bad idea, which will defeat the very efficiency principle of taxation. Already, a need is being felt among economists that the present number of slabs should be reduced, and the highest 28 per cent slab be abolished,” SJM national co-convenor Ashwani Mahajan said.