‘Congress wants 5% on tobacco?’ FM Nirmala Sitharaman hits back at ‘Gabbar Singh Tax’ comment; netizens react

FM Sitharaman at press convention after GST Council meet

Union Finance Minister Nirmala Sitharaman hit back at opposition criticism over the federal government’s newest GST reforms, together with elevating the utmost tax slab from 28 per cent to 40 per cent. The improve, primarily on sin and luxurious items, had drawn jibes from the Congress, who dubbed it the ‘Gabbar Singh tax.’She took a direct jab at Congress in response to journalist’s reference to the ‘Gabbar Singh tax’ remark while asking for her take on the 40% tax slab introduction. “Is the Congress Party demanding five per cent tax on tobacco and gutkha? Congress Party wants us to give it at 5%. Congress Party considered impossible to implement GST during their time,” she said.Further hailing the GST implementation she added, “We have implemented and are also doing second-generation reforms under the leadership of Modi ji so that people get relief on their day-to-day items. MSMEs and labour-intensive units also get relief, due to which there will be easy compliance. Congress should decide whether it wants to oppose or support on the issues that are in the interest of the people. People will expose you.“

Netizens react to 40% slab

Netizens gave mixed reactions to Sitharaman’s announcement of the 40% GST slab. One social media person commented, “Ironically this gutka and tobacco are highly consumed by comman man. I am not supporting 5% slab but these can levied by state governments like on liquor,” whereas one other merely replied, “Well said!!” An X person added, “40% GST on tobacco, cigarette and beer. If you don’t consume any of these, it’s equivalent to 10% hike in your salary.” “Oof, that’s a massive tax hit,” mentioned one other person.Many others gave related reactions both questioning why sure merchandise will not be banned whereas some opposed the hike, saying it should not come beneath GST ambit and have separate duties like for alcohol.Also learn: What are sin items and why they’re in highest slab? All it is advisable know

Why the upper tax price?

The new 40 per cent slab is for objects labelled ‘sin items’ or luxurious merchandise akin to tobacco, pan masala, aerated drinks and premium automobiles. The transfer marks a serious restructuring of the oblique tax system, as the federal government transitions to a simplified regime with two most important slabs of 5 per cent and 18 per cent, with this particular price as type of an exemption.Experts observe that the upper price ensures secure income since demand for these merchandise is essentially worth inelastic. The reforms additionally merge the Compensation Cess with GST on these items, sustaining total tax incidence, whereas easing compliance for MSMEs and labour-intensive sectors.