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They contend that existing indirect tax on tobacco products can exceed 53% without affecting revenue for central or state governments."A few states suggested that either it should be a basic excise duty, divisible between the Centre and states, or a central excise duty along with state excise duty - which would be a win-win for both, giving headroom to states to generate their revenue," revealed a source involved in discussions.Kerala has formally requested compensation for revenue losses from GST reforms."The so-called simplification of GST rates announced by Modi will be devastating for state revenues," Kerala finance minister Thomas Issac said in a post on X

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