Cess on cigarattes increased

New Delhi July 18: An anomaly was rectified. The GST Council in its 19 meeting has raised the cess on cigarettes. Finance minister said that we have detected an anomaly in present taxation system and the government would have suffered RS 5000 crore because of lower taxes on cigarettes.

The meeting was chaired by Arun Jaitley and the council met via video conference. He has also said that Currently 28 % GST and 5 per cent ad valorem cess will continue. The council has increased the fixed cess in the range of Rs 485 and 792 per thousand sticks. We have increased because the current tax rates were lower than the total of VAT and excise and other levies. The new rates are as follows

* Non-filter and filter cigarettes of length less than
65 mm -Rs 2,076 per 1000 sticks. (earlier RS 1591).
* For non-filter cigarettes of 65 mm to 70 mm length -
Rs 3,668 per 1000 sticks (earlier Rs 2,876 ).
* Filter cigarettes of 65 to 70 mm length - Rs 2,747
per 1000 stick cess (earlier Rs2,126.)
* Filter and non-filter cigarettes 70 mm to 75 mm - Rs
3,668 per 1000 sticks.
* For other cigarettes, the cess would be 36 per cent
plus Rs 4,170 per 1000 sticks (earlier 5 per cent plus Rs 4,170 ).

Finally, he has also said that the prices of the cigarettes may not rise.