India to extend surcharge on taxes on luxury, tobacco products – finance minister

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By Parveen Kumar on October 5, 2020 • ( Leave a comment )

FILE PHOTO: A man wearing a protective face shield smokes outside the Indian Coffee House after it was re-opened, after authorities eased lockdown restrictions that were imposed to slow the spread of the coronavirus disease (COVID-19), in Kolkata, India, July 2, 2020. REUTERS/Rupak De Chowdhuri

NEW DELHI – India will extend a surcharge on taxes on luxury goods including cars and tobacco products beyond 2022, under plans to help states repay loans raised to meet revenue shortfalls in the current fiscal year, the finance minister said on Monday.

“The GST council has approved to extend the cess(surcharge) beyond five years,” Nirmala Sitharaman told reporters after a virtual meeting with state finance ministers.

The surcharge on luxury goods such as cars and tobacco products, which varies from 12% to 200%, is part of the national goods and services tax (GST) introduced in 2017, and was due to expire in 2022.

Reuters

October 5, 2020

Reporting by Aftab Ahmed, Manoj Kumar

Our Standards: The Thomson Reuters Trust Principles.

https://in.reuters.com/article/india-economy-tax/india-to-extend-surcharge-on-taxes-on-luxury-tobacco-products-finance-minister-idINKBN26Q25H