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Cabinet approves raising GST cess on luxury cars to 25%
New Delhi, Aug 30 (IANS) The Union Cabinet on Wednesday approved an ordinance to raise the ceiling on GST cess for luxury vehicles and SUVs from the current 15 per cent to 25 per cent. This can lead to a hike in prices of high-end cars.
Briefing reporters after the Cabinet meeting, Finance Minister Arun Jaitley said it was decided to recommend to President Ram Nath Kovind to promulgate an ordinance in this regard.
The decision on raising the cess on luxury cars would be taken by the GST Council, he said.
Explaining the rationale, Jaitley said that pursuant to the implementation of Goods and Services Tax (GST), the price of luxury vehicles had substantially come down.
“Objective of any taxation policy can’t be that luxury goods becomes cheaper. Relief has to be given to a common man’s item and not a luxury item,” he said.
Currently, the luxury cars and sports-utility vehicles (SUVs) are taxed at 28 per cent under GST along with a cess of 15 per cent.
“The ordinance is only an enabling law so that cap for those luxury vehicles can be increased to 25 per cent.
“This doesn’t mean that cess will automatically increase. The GST Council, whenever it meets, is entitled to take a decision if it wishes to increase the cess within the cap,” he said.
In relation to certain products like cigarettes, tobacco and luxury vehicles, a cess was permitted under the GST, which goes into a compensation pool, from which any state that loses revenue in first five years would be compensated.
Replying to a question whether the GST rates would come down, Jaitley said it was a new experiment and one would have to see the pattern for a considerable time.
“The GST Council acts on expert advice. Optimum level of taxation has to be kept in mind. No comment on rates. This is an experiment. It has started off well. Collections are reasonably buoyant. We will see how it progresses. The objective was that those who are not paying taxes, start paying them,” he said.
The ordinance was needed to amend the Schedule to the GST (Compensation to State) Act 2017, that currently specifies 15 per cent as the maximum cess rate for luxury vehicles and SUVs.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.