GST Reforms: 'Skipping Tobacco Is Like A 10% Salary Hike' - Netizens React To FM Nirmala Sitharaman's 40% GST Remark

(MENAFN- Live Mint) Union Finance Minister Nirmala Sitharaman on Wednesday, September 3, announced significant GST reforms. Finance Minister's reply to a journalist's reference to 'Gabbar Singh tax' and the increase in maximum tax slab from 28% to 40% rate ignited reactions online.

Nirmala Sitharaman said,“Is the Congress Party demanding five per cent tax on tobacco and gutkha? Congress Party wants us to give it at 5%. Congress Party considered impossible to implement GST during their time. We have implemented and are also doing second-generation reforms under the leadership of Modi ji so that people get relief on their day-to-day items,” ANI reported.

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She added, "MSMEs and labour-intensive units also get relief, due to which there will be easy compliance. Congress should decide whether it wants to oppose or support on the issues that are in the interest of the people. People will expose you."

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The recommendations presented during the 56th GST Council meeting included changes in GST rates on cigarettes, chewing tobacco products like zarda, unmanufactured tobacco and beedi, besides rehaul of tax rates on services and goods other than. In general, the revised tax rates will come into effect from September 22 except for 'sin' goods. The revised rates for theses goods will be implemented at a later date, which will be announced once all loan and interest obligations related to the compensation cess have been fully cleared.

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A user wrote,“Ironically this gutka and tobacco are highly consumed by comman man. I am not supporting 5% slab but these can levied by state governments like on liquor.(sic)”

A second user remarked,“40% GST on tobacco, cigarette and beer. If you don't consume any of these, it's equivalent to 10% hike in your salary.”

A third user stated,“Vimal Pan Masala is no longer 'Zubaan Kesari'... it's now 'Jeb Khali'.””

A fourth comment read,“What was the problem with Madam Nirmala if there is only one GST rate may be 10-12% which could reflect one Nation one tax one rate.”

A fifth user stated, "Rahul Gandhi nailed it calling GST the "Gabbar Singh Tax"! Eight years late, slabs finally cut to 5% & 18%, easing costs for all."

A sixth user remarked,“Born: 1 July 2017, Died: 21 September 2025, RIP“Gabbar Singh Tax” !!, OM SHANTI

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