3.5 C
New York
Wednesday 1 December 2021

Buy now

Ad

HomeEconomyBusinessFAIFA urges Sitharaman to correct cigarette taxation

FAIFA urges Sitharaman to correct cigarette taxation

FAIFA has contended that error in cigarette taxation in the Budget has inadvertently increased compensation cess rates that have resulted in additional taxes of around 13% above the pre-GST levels

|

New Delhi:  The Federation of All India Farmer Associations (FAIFA) has urged Finance Minister Nirmala Sitharaman to correct an error in cigarette taxation under the new tax regime in the Budget, which did not account for the cascading effect on excise duty that existed in the pre-GST system.

The FAIFA is a non-profit organisation that represents the cause of farmers and farm workers of commercial crops across the states of Andhra Pradesh, Telangana, Karnataka, and Gujarat.

In a letter written to the Finance Minister, which has also been submitted to various concerned Ministries including the PMO, Ministry of Health and Family Welfare, Ministry of Agriculture, Ministry of Commerce and Industry, Ministry of Labour, the FAIFA has contended that error in cigarette taxation in the Budget has inadvertently increased compensation rates that have resulted in additional taxes of around 13% above the pre-GST levels.

“Any additional burden caused by the increase in compensation rates will put further pressure on the livelihood of Indian tobacco farmers. As observed in the past that increase in taxes have resulted in the inflow of huge quantities of illicit cigarettes in the market,” the FAIFA letter to Sitharaman said.

The legitimate cigarette industry size in India, which was at 110 billion sticks in 2011-12 as per industry estimates, has dropped by 25% to about 83 billion cigarettes in 2016-17. In contrast, the illegal, duty-evaded cigarette segment has grown to about 26 billion cigarettes in 2017, i.e., almost one-fourth of the industry.

To ensure livelihood support for tobacco farmers, FAIFA has appealed to roll back tax increase which is in the Budget so that taxes on the sector comes back to pre-GST revenue neutral rates. The federation has also said that the government should have a tax policy that disincentives illicit trade of cigarettes. It has also urged for reinstatement of tobacco incentives to boost the economy of Indian Flue Cured Virginia (FCV) farmers.

“… we would like to underline that the principle of revenue neutrality has been reiterated and again by the government in respect of fixation of tax rates in the Budget the GST era,” Javare Gowda, President, Federation of All India Farmer Associations (FAIFA), said making a case for restoring taxation to pre-GST levels.

Sirf News needs to recruit journalists in large numbers to increase the volume of its reports and articles to at least 100 a day, which will make us mainstream, which is necessary to challenge the anti-India discourse by established media houses. Besides there are monthly liabilities like the subscription fees of news agencies, the cost of a dedicated server, office maintenance, marketing expenses, etc. Donation is our only source of income. Please serve the cause of the nation by donating generously.

Support pro-India journalism by donating

via UPI to surajit.dasgupta@icici or

via PayTM to 9650444033

Obesity kills 2.8 million people a year.

Heart disease kills 17.9 million a year.

Diabetes kills 1.5 million people a year.

If the government actually cared about your health, they would have banned fast food, processed sugars, & refined oils a long time ago.

But they didn’t.

More than a third of world’s population have never used internet, says UN https://www.theguardian.com/technology/2021/nov/30/more-than-a-third-of-worlds-population-has-never-used-the-internet-says-un

The capital of Alabama is coming under fire and facing a large fine after removing a street name honoring the president of the Confederacy. https://cnn.it/3lmIN4o

Jal Board did not provide accounts for audit, CAG informs Delhi HC | Latest News Delhi - Hindustan Times

AAP.. is this your idea of transparency ? Why block an audit ? What skeletons will tumble out?

Those speaking about a massive scam vindicated ? https://www.hindustantimes.com/cities/delhi-news/jal-board-did-not-provide-accounts-for-audit-cag-informs-delhi-hc-101638211889859.html

Madhya Pradesh: Viral video shows a quack doctor killing a dog with a knife after the canine allegedly bit his son in Dabra area of Gwalior

"Taking cognizance of the viral video, a case has been registered & an investigation initiated," ASP (Rural) Jai Raj Kuber said on Tuesday

Read further:

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisment -

Now

Columns

[prisna-google-website-translator]
%d bloggers like this: