look news india
Hobbies are a big thing, now even the government seems to be saying this. The reason for this is clear. Your hobby is generating additional income for the government. This amount is not a small amount but Rs 70 thousand crores. In the language of economics, the additional income that the government is earning from your hobby is also called sin tax.
Sin tax is usually imposed on pan masala, alcohol, cigarettes, cold drinks, expensive perfumes, carbonated drinks, luxury cars. This is a kind of luxury tax. However, sin is a Gujarati sin. So spending on these things is actually a sin. The government taxes it under the category of luxury
Levy like GST cess
Since the implementation of GST system in the country in July-2017, the highest tax slab has been kept at 28 percent since then. But a cess of up to 15 percent was levied separately on sin goods or luxury items. The purpose of levying tax on this was that the revenue obtained from this item will be able to compensate for the revenue loss of the states, which is likely to occur due to the implementation of GST.
Now this sin tax has become a golden egg laying hen for the government. The government is earning so much from this that even after paying off all the expenses and debts, the government still has an extra Rs. 70 thousand crores.
the loan will be repaid before time
The central government took loans from the states during the Covid-19 crisis. The due date of most of these loans is March 2026. According to the information, according to the trend of GST cess collection, even if the government repays all the loans before time, Rs 65 thousand to 70 thousand crores will still be outstanding on the government.
The government's budget figures also testify to this claim. In the financial year 2020-21, the government's GST cess collection was Rs 85,191.9 crore. Then in 2021-22 it will be Rs. 1,05,000 crore, in 2022-23 it will be Rs. 1,25,862.40 crore and in 2023-24 it will be Rs. 1,45,000 crore. While in the financial year 2024-25 it is estimated to be Rs. 1,50,000 crore.
Cess discussed in GST Council meeting
When GST was implemented, the cess system was implemented for a fixed period only. This period of GST cess is ending in March 2026. In such a situation, in the 53rd meeting of the GST Council on Saturday, there may be a discussion on what should be done regarding GST cess in future. How to use the money received in this item.
