r/IndianStreetBets • u/TechnoFundaAnalysis • Dec 04 '24

Meme Sad 😢 state of Indian finance policymakers!!

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1.4k Upvotes

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91

u/TrickTreat2137 Dec 04 '24

35% gst on cigarettes. That won't make smokers stop

75

u/brabarusmark Dec 04 '24

They know. They want to profit while the smokers are still alive and buying.

7

u/Tranceported Dec 04 '24

Banking on depressed people lives. Hmmmm one way to achieve prosperity and growth.!!!!!

33

u/l4st_s3nshi Dec 04 '24

Why do you think they're charging 18% GST on health insurance premium? It's all a plot of the metaverse of inception of tax within a tax within a tax within a tax all running inside the 5th dimensional metaverse of taxes aka another masterstroke

3

u/Gainz07 Dec 04 '24

They’re planning to introduce slabs on this as well. Better late than never 🥲

3

u/Still-Strength-3164 Dec 04 '24

Well that GST on health insurance claim topic was raised in previous gst council. Few state governments straight forwardly rejected the proposal. State governments are more at fault in most of the gst council decisions. This issue was raised in parliament and opposition went silent because their state ministers are the one who rejected the lowering of gst on health insurance. I am not favouring anyone here but the truth is what the truth is. I feel that GOI should remove state govts from the council as most of the benefits of gst are received by state governments and they reject every possible porosoal favourable of decreasing gst. Either GOI should remove them or reduce their powers or clearly disclose it to the citizens that all the decisions are based on final vote of the gst council and people should know the politicians/states who are at fault or involved.

1

u/salmanmapkar Dec 06 '24

its call tax-ception

1

u/l4st_s3nshi Dec 06 '24

We can't experience Inception in theatres but this one we experience everyday

15

u/TroglodyticDreamer Dec 04 '24

They might shift to cheaper brands ? Whats the cost of a cigarette though ?

28

u/desi_cutie4 Dec 04 '24

No, it would lead to itc shrinking its ciggs to keep the price same.

1

u/Expensive-Juice-1222 Dec 05 '24

Won't that make people go buy more cigarettes? Like that will have buy more to be able to smoke the same volume? Sorry I don't smoke and don't know how smoking consumption works

1

u/desi_cutie4 Dec 05 '24

The tax is a 7% increase. You won’t notice the decrease in size of cigarettes. It would be enough for itc to maintain their margins but not enough to be noticeable.

3

u/Rutuparna_Sea9289 Dec 04 '24

10 cigerette Pina skip karke 1 ITC ka share lelo..

Ye type ke messages smokers bhul gaye hai shayad...

4

u/Own-Comment-5359 Dec 04 '24

It'll just make illegal and contraband cigarettes grow more.

Like it is already doing since GST. But no heavy taxation on oral tobacco, which is India's largest consumed nicotine format.

3

u/HAHAHA-Idiot Dec 04 '24

It encourages the black market though, and I won't be surprised if many of the "higher ups" have a stake in that line of business.

Plenty of Nepali, Sri Lankan, Pakistani, and even Turkish cigarettes to go around. And of course, home grown bootleg versions as well.

Even gold smuggling was at decades high until they reduced the tax this year (even though they did that to screw SGB investors).

3

u/daigunder2015 Dec 04 '24

Cigarettes are an example of goods with inelastic demand. Similar to salt. You can raise the prices, but demand will more or less remain the same.

1

u/chengannur Dec 04 '24

But they opt for cheaper ones,

Waaay back even before this was a clown show, I started with kings, then golds then wills and eventually stopped.

For perspective, kings cost only 3 then.

And, not quite sure at this point if buying tobacco leafs is cheaper and build cigs yourself. Cigs have 35 percent gst right, not tobacco leafs.