Shares slump as India tax panel proposes heavy sin tax on tobacco

(From NewsRise/Nikkei)

Shares of ITC, India’s biggest cigarette maker, slumped in Mumbai trading after a government panel proposed imposing a 40% tax on tobacco along with a so-called ‘sin tax.’

The 40% rate is much higher than the 17%-18% “standard” rate that will be applicable for most goods and services under the proposal drafted by Chief Economic Advisor Arvind Subramanian. Prime Minister Narendra Modi’s administration is seeking to push through the nationwide goods and services tax, which will replace a complex system of state-specific taxes with a uniform rate across the country, as part of efforts to improve the ease of doing business in India. Read more

Indian smokers

Indian smokers

 



Categories: Asia Unhedged, South Asia

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