How can the proposed hike in GST rates impact the consumption of cigarettes and aerated beverages in India
Discuss the potential consequences of increasing GST rates on cigarettes, tobacco, and aerated beverages to 35% on consumer behavior and the economy.
- Higher GST rates on cigarettes and aerated beverages may lead to an increase in their prices, making them less affordable for consumers.
- This could potentially result in a decrease in the consumption of these products, especially among price-sensitive consumers.
- Reduced consumption of cigarettes and aerated beverages could have positive health implications, leading to a healthier population in the long run.
- On the flip side, the increase in GST rates may also lead to an increase in tax revenue for the government, which could be used for various developmental purposes.
- The tobacco and beverage industries may see a decline in sales, potentially impacting their profitability and overall contribution to the economy.
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5 months ago