GST on vax must to keep costs low: FM responds to Mamata

- Advertisement -

Kolkata, May 9

Finance Minister Nirmala Sitharaman on Sunday said 5 per cent tax on vaccines and 12 per cent on medicines and oxygen concentrators was necessary to keep costs low in response to an appeal by West Bengal Chief Minister Mamata Banerjee to waive such fees.

“If full exemption from the GST is given, domestic producers of these items will be unable to offset taxes paid on their inputs and input services and would pass these on to the end consumers by increasing price,” she explained in a string of 16 tweets.

Input tax credit is the refund that manufacturers can claim on tax paid on raw materials and services used to make their products, thus making it cheaper.

Sitharaman said Covid-19 drugs and related items had already been exempted from import taxes and 70 per cent of the Integrated Goods and Services Tax (IGST) went to states.

Mamata wrote to Prime Minister Narendra Modi on Sunday, asking for tax waiver on the import of medicines and equipment needed to fight the pandemic.

It was Mamata’s third letter to PM Modi since being sworn in for the third term on Wednesday on the Covid crisis in the country. On Friday, she had demanded an increase in share of medical oxygen produced in the state.

West Bengal and other states have been affected by a vicious second Covid wave, which coincided with campaigning and voting for the 2021 Assembly election.




Disclaimer: This post has not been edited by our staff and is published from a syndicated feed. The Original Source of this post can be found at Source link

Latest

Biotechnology department eases norms for research on gene-editing plants

The guidelines circumvent challenges of using foreign genes to change crops profile The guidelines circumvent challenges of using foreign genes...

Telangana police killed 4 suspects held for gang-rape, murder: panel

The Supreme Court-appointed committee says police version that the four snatched their guns and fired at them was ‘absurd’ The Supreme Court-appointed committee says police...

Infiltration bid foiled on LoC; arms, narcotics recovered from killed terrorist...

Two infiltration bids foiled: PAK intruder killed; huge consignment of arms, drugs recovered ...

Karnataka mining: SC permits firms to export excavated iron ores

It also permitted mining firms to enter into direct contracts to lift excavated iron ore through inter-state sales It also permitted mining firms to enter...

New traffic regulations at Dasaprakash junction, Chetpet from May 22

Dr. Alagappa Road made one way; restrictions on Harrington Road Dr. Alagappa Road made one way; restrictions on Harrington Road The city traffic police announced...
- Advertisement -

More Articles

- Advertisement -