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

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

Tribune News Service

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.

Tribune Shorts


Top News

Himachal rain: Major cloudburst in Kullu’s Parvati valley; landslide in Shimla, 1 dead

Himachal rain: 7 feared dead as cloudburst hits Kullu's Kasol area, 1 dead in Shimla landslide

2 feared dead as car plunges into Beas river on Chandigarh-M...

Supreme Court to hear on Thursday plea of TV anchor against FIRs for doctored Rahul Gandhi video

Supreme Court to hear on Thursday plea of TV anchor against FIRs for doctored Rahul Gandhi video

On Tuesday, a police team from Chhattisgarh reached Uttar Pr...

Punjab CM Bhagwant Mann to get married tomorrow

Punjab CM Bhagwant Mann to get married tomorrow

Mann is getting married to Dr Gurpreet Kaur, who did her MBB...

Panchkula school bus slips into waterlogged ditch in Zirakpur; 15 students rescued

Panchkula school bus slips into waterlogged ditch in Zirakpur; 15 students rescued

The bus was making way for another school bus when the accid...

Cities

View All