Question : Inclusion of Bidi under Demerit Goods

(a) whether there is any proposal to include bidi under the list of demerit goods;

(b) if not, the reasons for not including bidi under the list of demerit goods, when it is equally harmful as other tobacco products;

(c) the total amount of tax collected from all types of tobacco products in the last financial year;

(d) the steps taken by the Government to impose additional cess on tobacco products to decrease their consumption; and

(e) the details of the GST due to various states of the country particularly Maharashtra?

The MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI ANURAG SINGH THAKUR)

(a) and (b): Bidi attracts GST at highest rate of 28% just as other tobacco products. At present it does not attract compensation cess.

(c): the total amount of tax/duty collected from suppliers/manufacturers of tobacco products in the last financial year is as under:
(in Rs Crore)
Levy 2019-20
GST 53540
Excise duty including NCCD 1610
Source: GSTN, DG Systems

(d): NCCD on tobacco products was increased in Budget 2020-21.

(e): GST including Compensation Cess paid by suppliers engaged in supply of tobacco products in Maharashtra is estimated to be Rs 5035 Crores in 2019-20.