As the 18th Lok Sabha’s first Winter Session goes in full swing with its countless disruptions and adjournments, a new set of tax hikes proposed by the Group of Ministers (GoM) has now made it to headlines.
Tax Hikes Proposed
As per reports, the Union Government, in addition to the other products, is expected to impose a 35 per cent special tax rate on consumer products, including tobacco and aerated beverages.
In addition, the GoM has also proposed a hike in the GST rates levied on various direct consumer goods, including handbags, cosmetics and watches. In addition, a proposal to impose a GST rate of 18 per cent on Ready Made Garments worth Rs 1,500 – Rs 10,000 has also been made.
Netizens have now reacted to this news and not many of them seem happy.
Some of them took to X, to express their indignance. One user said, “35% GST SLAB ! ARE THEY OUT OF THEIR F*CKING MINDS ?”
35% GST SLAB !
ARE THEY OUT OF THEIR F*CKING MINDS ? pic.twitter.com/cMPl2CFQcu
— RedBoxxLocal India Parody (@REDBOXINDIIA) December 2, 2024
Taxation Minister Of India?
After paying 40% Income tax on their earnings, middle class people will have to pay a 35% GST to see the time on their watch or sip a Coco Cola! ⌚️
She is acting like Taxation minister and not a Finance minister.#incometax #NirmalaSitharaman pic.twitter.com/6qALmdwuom
— RS (@WithRitesh) December 2, 2024
Another user added, “After paying 40 per cent Income tax on their earnings, middle class people will have to pay a 35 per cent GST to see the time on their watch or sip a Coco Cola!. She is acting like a Taxation minister and not a Finance minister.”
Another user said, “35 per cent GST shock for Tobacco & Aerated Drinks! Major GST hike on several goods proposed by the finance minister, potentially pushing them into the highest tax bracket. #35 per cent GST.
35% GST is just starting bro.
I will eventually hike it to 125%. pic.twitter.com/VjLeLmhSQ4
— Value | Compounding (@oldschoolinvest) December 2, 2024
I was born in India just to boost countries GDP and pay taxes
35% GST! Bhai chappal se maro inko https://t.co/FExgYR5AfK
— Aditya Singhania (@SimpleAditya_9) December 2, 2024
The hashtag 35 per cent GST or 35 GST has been trending on X ever since this news broke.
Will Go To Veitnam To Buy Shoes
One user sardonically quipped, “35 per cent GST is just starting bro. will eventually hike it to 125 per cent.”
If this 35% GST on good shoes happens, I will boycott buying any footwear in India.
I will go to Vietnam in Hawaii chappal and buy what I want.
If this news is true – the finance ministry as a whole has lost the plot.
Update: it looks like top end shoes will go from 18% to…
— Anand Sankar (@kalapian_) December 2, 2024
On X user said, “If this 35% GST on good shoes happens, I will boycott buying any footwear in India. I will go to Vietnam in Hawaii chappal and buy what I want. If this news is true – the finance ministry as a whole has lost the plot.”
Could Hurt Consumption Patterns
Another user quipped, “Now customs has to keep an eye out for new shoes than gold in shoes.”
Another user, who claimed to be a Chartered Accountant, tagged Nirmala Sitharaman in his post and said, “The proposed increase of the Goods and Services Tax (GST) on 150 items, including quality footwear, shoes, clothing, and more, to 35 per cent requires a reevaluation of consumption patterns.”
The proposed increase of the Goods and Services Tax (GST) on 150 items, including quality footwear, shoes, clothing, and more, to 35% requires a reevaluation of consumption patterns. If this policy is enacted, I would be forced to boycott purchases from branded stores and instead…
— CA Chirag Chauhan (@CAChirag) December 3, 2024
The CA further added, “If this policy is enacted, I would be forced to boycott purchases from branded stores and instead consider alternatives abroad, potentially sourcing from markets like Vietnam.”
“This increase will also impact millions of small business owners, as changing consumption patterns and higher taxes will likely reduce sales.”
‘Finance Ministry Should Re-Consider’
Further appealing to the government, the user added, “It is essential for the finance ministry to reconsider this direction, as such tax hikes could stifle consumption rather than boost economic activity.”
“A more favourable approach would be to lower GST rates uniformly to 5 per cent and 12 per cent, instead of raising them to 18 per cent and 35 per cent. Additionally, the principle of equity will be compromised if rates are raised to 35 per cent. Please retweet if you want the GST council and finance minister to reject this recommendation. @GST_Council @nsitharaman.”
