GST :Cigarettes prices to reduce?
Written by : SMTV24x7 | Tue, Jul 04, 2017, 01:08 PM
New Delhi, July 4: The Central government has removed additional excise duty on tobacco, pan masala, and cigarettes. The Finance Ministry has withdrawn the central excise notification dated February 27, 2010. The notification relates to excise duty rate on unmanufactured tobacco and chewing tobacco.
Currently, under GST a cess is levied on demerit and luxury goods above a rate of 28 per cent. The tax on items are as follows
* Cess on Pan Masala has been decided at 60 % percent.
* Tobacco cess will vary from 71-204 percent.
* Scent Zarda and filter khaini 160 per cent cess.
* Pan masala containing gutkha 204 per cent.
* Filter and non-filter cigarettes less than 65 mm will be levied
a cess of 5 per cent and additional Rs 1,591 per 1,000 sticks.
* Non Filter cigarettes 65-70 mm 5 % cess and additional RS 2876 per 1000 sticks.
* Filter cigarettes 65-70 mm 5 % cess and additionally RS 2126 for 1000 sticks.
* Cigars at 21 % cess or RS 4,170 per 1,000 sticks whichever is higher will be levied.
* Branded gutkha a cess of 72 per cent.
* Smoking mixtures for pipes and cigarettes attract 290 per cent.
Finally, experts say that current tax rates will lower the cigarette prices by 5-6 %.