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India proposes raising GST on tobacco and sodas to 35%, while essentials get a lower 5% rate.
A committee in India has proposed changes to the Goods and Services Tax (GST) to simplify the tax structure and boost revenue.
The new proposals include a higher 35% GST on items like tobacco and sodas, and a 5% GST on essential items such as bicycles and bottled water.
Textiles will see varied rates: garments priced up to ₹1,500 will face a 5% GST, those between ₹1,500 and ₹10,000 will face 18%, and items above ₹10,000 will be taxed at 28%.
These changes aim to discourage unhealthy habits and support basic necessities.
The recommendations will be discussed by the GST Council on December 21.
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India propone elevar el GST en el tabaco y las gaseosas al 35%, mientras que los productos esenciales obtienen una tasa de 5% más baja.