• search
For Quick Alerts
Subscribe Now  
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    GST Council decides to hike cess on cigarettes

    By Ians
    |

    New Delhi, July 17: The government decided to hike the cess on cigarettes which intends to take away the profit the cigarettes firms have made.

    "Total revenue gain with higher cess on cigarettes seen at Rs 5,000 crore", said Finance Minister Arun Jaitley.

    Arun Jaitley

    "In first 15 days of GST implementation, it was noted that the 28 per cent tax rate plus compensation cess on cigarettes when translated, the impact of cascading effect had not adequately factored in, resulting in windfall gain for the cigarette companies, Jaitley said after the council meet.

    Now the tax rate on cigarette remains at 28 per cent, the ad valorem at 5 per cent with the numerical amount on each category of filtered and non-filtered cigarettes being raised to Rs 2,076 per 1,000 units, Rs 2,747 per 1,000 and Rs 3,668 per 1,000 of different categories of cigarettes.

    For other cigarettes the ad valorem has been increased to 36 per cent plus Rs 4,170 per 1,000 units.

    Cess on cigarettes of up to 65 mm raised by Rs 485 per thousand sticks and on those exceeding 65 mm by Rs 792 per thousand sticks. Change on GST cess rate for cigarettes will be effective from July 17 midnight.

    IANS

    For Daily Alerts

    For Breaking News from Oneindia
    Get instant news updates throughout the day.

    Notification Settings X
    Time Settings
    Done
    Clear Notification X
    Do you want to clear all the notifications from your inbox?
    Settings X
    X
    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Oneindia sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Oneindia website. However, you can change your cookie settings at any time. Learn more