| Date: |
12-05-2010 |
| Subject: |
Govt withdraws excise duty exemption on small cigarettes |
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The government has withdrawn the excise duty exemption on small-sized cigarettes, a move that may lead to increase in prices of the sticks.
Cigarettes of less than 60 mm length were given excise duty benefits of Rs 150 per thousand sticks in February.
The Department of Revenue in a notification said it has rescinded the duty exemption on small-sized cigarettes.
The move follows ban on foreign direct investment in cigarette manufacturing. In October 2008, India had prohibited smoking at public places.
Meanwhile, the government has also withdrawn the customs duty exemption of Rs 2,000 per 1,000 KWH on import of electricity.
However, no reason was cited behind the move. The exemption was given in February.
The Directorate General of Foreign Trade issues licence for import of electricity in consultation with Ministry of External Affairs, Ministry of Power and Department of Commerce.
Source : ndtv.com
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