Tobacco products to be costlier in UP

Lucknow, May 24: Tobacco products in Uttar Pradesh are likely to be costlier, with the Mayawati government today announcing a hefty trade tax on tobacco products which will yield the government a revenue of Rs 625 crore annually.

A decision to this effect was taken at a state cabinet meeting chaired by Chief Minister Mayawati here today.

According to the new tax structure, the government has fixed a 12.5 per cent trade tax on beedi while the rest of the tobacco products will be at a flat rate of 32.5 per cent.

Breifing mediapersons, State cabinet secretary Shashank Shekhar Singh said earlier, tax on tobacco products were imposed by the centre but after the VAT regime, the state government was given the power to fix tax on these products.

Earlier, Uttar Pradesh used to recieve around Rs 250 to Rs 300 crore annually from the centre on taxes on tobacco products.

UNI