GST on Cigarettes, Tobacco, and Aerated Beverages Likely to Increase to 35%

The Goods and Services Tax (GST) rates on cigarettes, tobacco products, and aerated beverages are likely to increase to 35%. This proposed hike forms part of the government’s agenda to discourage consumption of harmful products while boosting tax revenues. The decision could lead to a significant impact on related industries, potentially affecting supply chains and pricing strategies. The proposed revisions are still under discussion and are likely to be finalized in the upcoming GST council meetings. This development underscores the government’s dual objective of public health promotion and revenue generation through targeted tax policies.