??New Tax on smoking and Coke | ??Indians are lab rats for Bill Gates?

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Market Watch

??Sensex was up 597.67 points or 0.74 percent at 80,845.75, and the Nifty was up 181.10 points or 0.75 percent at 24,457.15.

??Investors' wealth rose by Rs 3.69 lakh crore, as the market capitalisation of BSE-listed companies rose to Rs 453.41 lakh crore, from Rs 449.72 lakh crore in the previous session. The BSE midcap and smallcap indices rose a percent each.

ICYMI

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????Music legend Elton John says he has lost his eyesight.

??????Elon Musk's $56 billion pay package as Tesla CEO was struck down by a Delaware judge.

????????ChatGPT refuses to say one specific name – and people are worried.

New GST bracket for smokers

The Group of Ministers (GoM) has proposed a substantial hike in the Goods and Services Tax (GST) on select products, notably cigarettes, tobacco, and aerated drinks. The GST Council, chaired by the Finance Minister, will decide on the proposed changes on December 21

• The suggested increase would elevate the GST rate for these "sin goods" from 28% to 35%. This recommendation, finalized in a meeting chaired by Bihar Deputy Chief Minister Samrat Choudhary, is set to be reviewed by the GST Council on December 21, 2024.
• The announcement has already impacted the market, with shares of companies like ITC and Varun Beverages declining by up to 5% in intra-day trading, reflecting concerns over reduced sales and profitability due to higher taxation.
• If approved, these changes could significantly reshape India's tax policy on harmful goods, influencing consumer prices and market trends in the affected sectors.

BJP supporter declines says, “No such plans”:

GST slowing down economy: The implementation of GST has been criticized for contributing to India's economic slowdown, with GDP declining from 8% to 3% before the pandemic, particularly affecting the unorganized sector and SMEs due to compliance challenges and operational costs. Inflationary pressures and reduced consumer spending have further dampened growth.

• However, experts argue that factors like demonetization, global conditions, and the pandemic also played significant roles.
• Despite initial challenges, GST revenue collections have doubled since its inception, and studies suggest potential long-term economic benefits if compliance improves, indicating that GST's impact may not be wholly negative.

Arguments for: The proposed 35% GST slab on tobacco, sugary drinks, and similar "sin goods" presents compelling arguments on both sides. Proponents argue that this hike could significantly enhance government revenue, helping offset losses from reduced GST rates on essential items while funding public health initiatives and compensating states for revenue shortfalls.

• Additionally, higher taxes on harmful products may discourage consumption, leading to better health outcomes. This aligns with global practices where increased taxation on tobacco and sugary drinks has been used effectively to reduce usage and associated risks.
• The focus on taxing "demerit goods" also reflects a moral stance aimed at promoting healthier choices. Moreover, adopting this strategy would bring India’s public health policies in line with international standards.

Arguments against: However, opponents caution against potential downsides. The tax hike may disproportionately burden low-income consumers, who might continue purchasing these items despite higher prices, exacerbating financial strain.

• It could also encourage black market activities, undermining revenue goals and leading to unregulated, unsafe products. Businesses in the tobacco and beverage sectors may face reduced sales, resulting in job losses and negative ripple effects across related industries.
• Critics further argue that the addictive nature of tobacco and the popularity of sugary drinks might limit the effectiveness of the tax in reducing consumption, potentially nullifying the anticipated public health benefits.

In addition to the new tax slab for tobacco and beverages, the GoM has proposed changes to the GST structure for other goods, such as garments.

• Garments priced up to ?1,500 would attract a 5% GST, those priced between ?1,500 and ?10,000 would fall under the 18% bracket, and garments exceeding ?10,000 would face a 28% GST.
• These adjustments are part of a comprehensive tax rationalization strategy, which includes revisions across 148 items, aimed at bolstering revenue collection while mitigating potential losses from reduced GST rates on essential goods.

Clip du jour

UK MPs raise the issue of Hindu persecution in Bangladesh in British Parliament

“India is kind of a laboratory”

Bill Gates has come under fire for referring to India as a “laboratory to try new things” during a podcast with Reid Hoffman, which sparked a backlash on social media.

Past allegations The Bill & Melinda Gates Foundation (BMGF) has faced significant criticism in India for its involvement in HPV vaccine trials, which were linked to deaths, raising concerns about unethical practices and inadequate oversight.

• The controversy led to increased scrutiny of BMGF, with critics questioning its financial ties to pharmaceutical companies and its impact on public trust in vaccination programs.
• BMGF is also facing legal challenges, including a petition claiming that the Covishield vaccine caused a medical professional's death.

In addition to this controversy, BMGF is facing legal challenges in India. The Bombay High Court has issued notices to Bill Gates, the Serum Institute of India (SII), and others in response to a petition from Dilip Lunawat, whose daughter, Dr. Snehal Lunawat, died shortly after receiving the Covishield vaccine.

• The petition alleges that her death was caused by adverse reactions to the vaccine, and Lunawat is seeking ?1,000 crore in compensation.
• The case raises broader concerns about vaccine safety and the accountability of organizations involved in vaccine development, including BMGF, which has been previously criticized for its role in vaccine trials and the ethical implications of its work.
• BMGF's influence over the global COVID-19 response has also come under scrutiny.
• With nearly $10 billion invested in pandemic-related activities, BMGF, along with partners like Gavi and the Wellcome Trust, has taken on a role typically reserved for governments, particularly in low- and middle-income countries (LMICs) struggling to secure vaccines.

Also, BMGF's influence on global health, particularly during the COVID-19 pandemic, has been criticized for its financial power and limited vaccine distribution in low- and middle-income countries, leading some to label its actions as "vaccine colonialism."

• Critics argue that the foundation's stance on intellectual property rights and its approach to global vaccine distribution contributed to inequities in access, despite shifting its position on patent waivers.

What’s happening | Public demands re-elections

• ?????People from Markadwadi village in Maharashtra planned to hold a “re-election” using ballot papers due to distrust in EVMs but cancelled after police intervention.\

Hi, I’m Aniket Mishra, the editor of this newsletter. I’d love to hear some feedback on the newsletter. WhatsApp me directly and tell me what you think.