Mokokchung, June 30 (MTNews): The Finance Ministry said on June 29 that the government will raise taxes on various products and Services, including kitchenware, to 18% from the existing 12%.
The decision was taken after the two-day 47th GST Council Meeting that will be made effective from 18 July, 2022.
Kitchen utensils, LED lights, agricultural machinery, solar water systems, and services such as labor contracts for roads, irrigation projects, hospitals, and educational institutions will now be charged at 18%, up from 12% before, according to the statement.
According to Finance Minister Nirmala Sitharaman, the Commodities and Services Tax Council resolved to rationalize tax rates on some goods and services in order to eliminate an inverted duty structure.
The GST Council also authorized an increase in tax on petroleum and coal bed methane to 12% from 5% before, as well as rate increases for packaged food goods. While the GST on electronic trash was increased from 5% to 18%.
Following FM Sitharaman’s statements, economists predicted that higher taxes will place an extra strain on people already suffering rising food and energy prices.
“The tax on agricultural commodities like as packaged cereals, wheat, maize, and rice that are unbranded yet marketed in a branded container may increase by 5%,” Tax Connect Advisory Vivek Jalan stated.
“Edible oils and milk products are anticipated to become more expensive as a result of GST rate rises,” he stated.
