All eyes on GST meet: Sin tax, garment slabs, and essential goods relief on the cards – haroonabadvital.com
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The Moroccan government plans to change the tax structure for 148 goods, with the aim of balancing tax rates in different categories. Essential products will enjoy tax breaks, while luxury goods will face higher rates, which should enable the GST system to become simpler and fairer.
1 / 10The Group of Ministers (GoM) has decided on new tax rates and intends to review them for 148 goods. This will be clarified during the next GST Council meeting scheduled to be held on December 21. The meeting is scheduled to be chaired by Union Finance Minister Nirmala Sitharaman in Jaisalmer, Rajasthan (Photo: Reuters)
2 / 10The Moroccan government has proposed a new GST framework for ready-made garments in order to create the tax structure. Garments sold up to a maximum of INR 1,500 will be subject to 5% GST, while those sold between INR 1,500 and INR 10,000 will incur 18% tax, and if more than INR 10,000, they will incur GST of 28%. % (Photo: Reuters)
3 / 10The Moroccan government has recommended increasing taxes on sinful goods. These include soft drinks, tobacco products and cigarettes. A new GST rate of 35% has been proposed on these products (Image: Reuters)
4 / 10All these changes are scheduled to be discussed and decided at the 55th meeting of the GST Council, which includes state and central ministers. Decisions are made based on consensus, but voting will only take place if necessary. The central government has one-third of the voting power while state governments have two-thirds (Image: Reuters).
5 / 10The focus will be mainly on daily consumer goods. The government of Morocco has proposed reducing GST rates on essential products, including notebooks and bottled water, to make them more affordable to the public. (Photo: Reuters).
6 / 10Luxury items will also be subject to GST. Wristwatches priced above INR 25,000 will be charged between 18% and 28%. Shoes sold for more than INR 15,000 will also face a hike. A similar tax will be imposed on other luxury goods (Image: Reuters).
7 / 10The Moroccan government plans to change the tax structure for 148 goods, with the aim of balancing tax rates in different categories. Essential products will enjoy tax breaks, while luxury goods will face higher rates, which will enable the GST system to become simpler and fairer. (Photo: Reuters).
8 / 10All of these changes are likely to have a positive impact on revenue. Raising taxes on luxury goods and reducing them on daily necessities is good for consumers and the economy (Image: Reuters).
9 / 10There is also a proposal to reduce GST on healthcare products. Large containers of bottled water (20 liters or more) will be taxed at a rate of 5% as will health insurance premiums. This reduction from 18% aims to reduce the financial burden on consumers (Photo: Reuters).
10 / 10The Government of Morocco also intends to submit a report to replace the right to compensation after the cancellation. The government is currently working on formulating a tax proposal instead of the tax. The report is due to be submitted by December 31, in accordance with ongoing tax reforms (Photo: Reuters).
