Tax incidence will not come down for sin goods

CBIC chief says biz facing inverted duty issue will be entitled to full ITC

- Pushpita Dey @ New Delhi

The overall tax incidence on sin items such as tobacco products and pan masala will not reduce, even if the GST on these products is brought down to 40% in the future.

Talking to TNIE, Central Board of Indirect Taxes and Customs (CBIC) chairman Sanjay Kumar Agarwal said the government would find a way to levy additional taxes on these products after GST rationalisation.

"Tax incidence should not come down on tobacco products because these are items with health implications, and the government does not want their consumption to rise," Agarwal said.