‘5% Tax On Tobacco, Gutkha?’: Nirmala Sitharaman’s Jibe At Congress On GST Cuts Question

Last Updated:September 04, 2025, 08:02 IST

Nirmala Sitharaman announced GST rate cuts on several daily-use items, and hit out at the Congress, saying they failed to implement GST during their tenure.

Union Finance Minister Nirmala Sitharaman addresses the media regarding the 56th GST Council meeting, in New Delhi (Photo: PTI)

As Nirmala Sitharaman announced GST tax rate slashes on common use items ranging from hair oil to corn flakes, TVs, and personal health and life insurance policies, the Finance Minister took a swipe at the Congress party over the Opposition’s question on the special 40 per cent slab.

Speaking at the press conference, Sitharaman said the Congress party considered it impossible to implement GST during their time, and that the party should decide if it wants to oppose or support the issue.

“Is the Congress Party demanding a 5 per cent tax on tobacco and gutkha? Congress Party wants us to give it at 5 per cent,” Sitharaman said.

“The Congress Party considered it impossible to implement GST during their time. We have implemented, and are also doing second-generation reforms under the leadership of Prime Minister Narendra Modi ji, so that people get relief on their day-to-day items,” she said.

“MSMEs and labour-intensive units also get relief, due to which there will be easy compliance. Congress should decide whether it wants to oppose or support the issues that are in the interest of the people. People will expose you,” the Finance Minister added.

“Those items currently under compensation cess have already been proposed at 40 per cent because they fall under the category of sin goods. As I said, 40 per cent is not part of the general framework, it applies only to these tobacco-related products. So, the incidence will remain at 40 per cent for them,” the Finance Minister said.

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Vani Mehrotra

Vani Mehrotra is the Deputy News Editor at News18.com. She has nearly 10 years of experience in both national and international news and has previously worked on multiple desks.

Vani Mehrotra is the Deputy News Editor at News18.com. She has nearly 10 years of experience in both national and international news and has previously worked on multiple desks.

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