All smokers, here is some bad news for you! You may have to shell out extra bucks from your pocket to buy cigarettes from now on. ITC on Wednesday said that it will hike prices of cigarettes by about 4% across brands, sources told ET Now. “ITC has hiked prices of premium cigarette brands by 8-9%, the sources added.
FM Arun Jaitley in Budget 2017 hiked the excise duty on unmanufactured tobacco to 8.3 per cent from 4.2 per cent earlier, while that on pan masala was hiked to 9 per cent from 6 per cent. Likewise, excise duty on cigar, cheroots was changed to 12.5 per cent or Rs 4,006 per thousand, whichever is higher from 12.5 per cent or Rs 3,755 per thousand, whichever is higher. Excise duty on chewing tobacco, including filter khaini and jarda scented tobacco was also doubled to 12 per cent from 6 per cent earlier. Excise on paper-rolled handmade bidis was increased to Rs 28 per thousand from Rs 21 per thousand and the same for paper rolled biris has gone up from Rs 21 per thousand to Rs 78 per thousand.
With the expected implementation of GST, large-scale tinkering of tax structure was avoided in the Budget thereby sparing most of the commonly used daily items from price changes.
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“Implementation of GST is likely to bring more taxes to both central and state governments because of widening of tax net. I have preferred not to make many changes in current regime of Excise and Service Tax because the same are to be replaced by GST soon,” Jaitley said while presenting the Budget.