Public health groups have requested the GST Council to increase the compensation cess on tobacco products. And use the revenue derived from it like schemes like Ayushman Bharat. GST Council Meeting Scheduled on 18 December.
He has argued that increasing the cess on tobacco products. It could help the government achieve an additional revenue of 190 billion to reduce the deficit in GST collections. Earlier, the government has consistently failed to meet the GST revenue target.
GST Council Meeting
The groups said in the proposal that “a 28% rate. And additional cess on tobacco product will not only increase the additional revenue but will also reduce tobacco consumption”. As well as can be used for government schemes like Ayushman is.
Health economists, public health experts, and cancer research experts have called for Rs 5,463 cess per 1000 sticks on cigarettes.
He says that “such an increase could potentially increase GST revenue from cigarettes by about 150 billion. Targeting a 10% reduction in consumption.” Compensation cess on all smokeless tobacco products. It should also increase from the present 104% to 125%.