GST Reform on Cigarettes Likely at Sept 3-4 Council Meeting as FAIDA Pushes forMRP-Based Levy

A GST reform on cigarettes is likely to be discussed at the GST Council meeting on September 3-4, with FAIDA pushing for an MRP-based levy. The proposed reform aims to simplify the current tax structure, which is based on the length of the cigarette and is often seen as complex and prone to evasion. An MRP-based levy would not only make the tax system more transparent but also help in curbing the illicit trade of cigarettes. The move is a significant step towards a more transparent and less intrusive tax environment, is aimed at promoting tax compliance while being sensitive to the practical difficulties faced by businesses.