Jaitley noted that 4-slab structure was under consideration, with lower rates for essential commodities and higher bracket for luxury goods.
Finance Minister Arun Jaitley.
New Delhi: Finance minister Arun Jaitley on Wednesday spoke in favour of levying a cess on tobacco and luxury products to compensate states for loss of revenue on GST saying the cost of funding through an additional tax would be “exorbitantly high and almost unbearable”.
The finance minister noted that 4-slab structure was under consideration, with lower rates for essential commodities and higher bracket for luxury goods.
“Different items used by different segments of society have to be taxed differently. Otherwise the GST would be regressive,” he wrote.
( Source : Deccan Chronicle. )
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