You must Sign In to post a response.
  • Category: Miscellaneous

    Poors are crying: Tax on Gold 3%, Tax on beedi (desi cigarette) 28%!

    There is no end to the misery of the poor! Finance Minister Mr. Arun Jaitley has announced that gold will be taxed at 3% under the new Goods and Services Tax (GST) regime. Rough diamonds will be levied a nominal tax of 0.25%.

    The poors can't even imagine purchasing gold or diamond. They get some sort of satisfaction by smoking a simple beedi after hard labour throughout the day. But what is the decision about beedi? The Finance Minister has announced that the tendu leaf (with which beedi is made) will be taxed at 18% and beedis will be levied tax at the rate of 28% in the new tax regime.

    Why so much tax is being levied on beedis? Not only poors, but I feel Engineering and Science students will also be adversely affected by this decision. I still remember that we used to smoke 'college beedis' (very small beedis) during the interval between two long periods during my college days and university days.
    What are your views on GST? Share them here.
  • #599901
    Gold at 3 percent tax is welcome step as it would be helpful to all sections of the society. Because without gold any ceremony or function cannot be full. But heavy tax on beedi is something which I cannot understand. I know this government wants to quit smoking habit among the public. But there is no harm in having puff of beedi by poor. Why should the government impose so much tax on this small scale Industry which is giving more important to house holds in villages. Surely Telangana government is going to protest on this issue as many beedi workers are going to be affected.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #599907
    28% tax on beedis is very high. Still many poor in the villages used to consume these beedis. The industry of beedi making is in unorganized sector, and many ladies in villages earn their livelyhood on this beedi making . So government may have to rethink and make some amendments.
    drrao
    always confident

  • #599910
    According to the new proposal of GST taxes, 3 percent on gold, 28 percent on Biscuits, 12 percent on clothes, 18 percent on footwear etc. In this taxing variations were shown on the price index of the goods. Usually when price is more, quality and standards of the goods will be more. Because of this quality and standard goods consumer has to pay heavily. Because of this most of the people will go for less priced goods which will deprive them to use quality goods. Due to this many middle class people will suffer. We can find a reason for levieng more tax on Beedies to stop tobacco consumption but why more tax was levied on Biscuits which were mostly consumed by small children. Do you think Center has shown any proper rationality in fixing taxes or simply they think over in improving their tax collections? Do you think this variation in taxes according to price index will divide the people deeply into groups of rich and poor ?

  • #599912
    When other tobacco and pan masala products are taxed heavily, why should we leave beedi then. Till now taxes on beedi industry was not taken seriously. Enough black money used to be generated in beedi industry. When Government tries to curb black money, it has no other go except taxing the industry. When smoking beedi affects the health, Government will think about its financial health as well as poor man's health by levying tax.
    Regarding taxing on gold, Government slowly increases the tax. It increased to 3 percent from the current 2 percent and Government expressed its view that it will further increase it to 5 percent. Government already saw a huge reaction from women, when it tried to meddle with gold earlier.

  • #599944
    The raise in the taxation makes us (if positively thinking)to have a chance to reduce our Gold investments and making us to buy gold only on necessity. Secondly there is a good chance to the people who are intending to quit the smoking habit by terming the same because of the price raise.

  • #599984
    The 28 % rate is not justified. Finance minister wants to earn more taxes without considering popular support. Govt should reduce her expenditure and cost cutting measures should be applied. exploitation of people is not good. PM should change the finance minister because he is a defeated candidate and anti public.
    The greatest wealth in this world is mental peace and good health.

  • #599986
    There is only one point I can imagine in this regard.
    Gold smuggling is going on and is increasing in spite of all preventive measures. So if the government keeps the tax less, then it may induce people, the traders and individual users to take the legally approved channels rather than take high risk. The other reason I can imagine is the great pressure the jewellery lobby exerts on the government and political parties. As politics thrives on magnanimous funding, parties may not plug one source of funds and try to please the gold-real estate nexus lobby.

    But even from day one when the GST matters were sketchy oly, I was sure of one thing; that it is the hapless final customer who will get the burden.All others n the chain get back whatever they paid as GST. I am sure the taxes nonessential items will go higher and higher and those on luxury and non-essential items will come down.
    The 'uniformity' promised will be like that only. The non-essentials will be given concession(because they are from the monopolies and lobbies) the essentials will be taxed higher and higher(because they do not have lobbies or pressure group) and both will meet at a juncture and then there will be uniformity. Call me a cynic;I will be only happy and welcome to be disproved.


  • Sign In to post your comments