​​​
  1. GST impact on cigarettes: Prices set to go up as council decides to hike cess; new rates effective from midnight

GST impact on cigarettes: Prices set to go up as council decides to hike cess; new rates effective from midnight

Weeks after GST was implemented, the prices of cigarettes are set to go up. Union Finance Ministry Arun Jaitley on Monday announced that GST Council has decided to hike cess on cigarettes to take away the windfall manufacturers were making.

By: | Updated: July 17, 2017 9:19 PM
GST impact on cigarettes, GST impact on cigarettes news, gst on cigarettes, cigarettes gst, gst on cigarette, gst, gst india, gst rollout, gst impact, arun jaitley GST impact on cigarettes: Union Finance Ministry Arun Jaitley on Monday announced that GST Council has decided to hike cess on cigarettes to take away the windfall manufacturers were making. (Image Source: PTI)

GST impact on cigarettes: Weeks after GST was implemented, the prices of cigarettes are set to go up. Union Finance Ministry Arun Jaitley on Monday announced that GST Council has decided to hike cess on cigarettes to take away the windfall manufacturers were making. According to Jaitley, “Change in cess on cigarettes to get Rs 5,000 crore additional revenue.” Also, Union Minister Jaitley confirmed that the new tax rate will be effective from midnight tonight. “GST council in its meet reviewed compensation cess rates on cigarettes and recommended increase in the same,” Jaitley added.

Earlier, Tobacco Institute of India (TII) had said that the GST is an unique opportunity for the government to address the growing illegal cigarettes trade in the country. The institute, a body representing interests of legal cigarette makers such as ITC, Godfrey Philips and VST, also said the government must also consider the plight of distressed tobacco farmers.

“GST presents a unique opportunity to government to address the growing illegal cigarette trade in the country,” said TII Director Syed Mahmood Ahmad. “This would also help distressed tobacco farmers, the legal cigarette industry and also inject buoyancy in revenue collection from this sector,” he added.

TII represents leading cigarette manufacturers accounting for more than 98 per cent of the country’s domestic sales of duty paid cigarettes.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

  1. No Comments.

Go to Top