Govt not to reduce excise duty on Filter and Non Filter Cigarettes .

Government has not entertained the request by Tobacco Institute of India (TII) to reduce the excise duty rates on filter and non filter cigarettes. TII wants the gap between the excise duty rates on cigarettes and other tobacco products to be reduced.

In a representation dated 11th March, 2010, the Institute had requested for reduction in excise duty on filter cigarettes below 60 mm length to Rs. 300/- per 1000 sticks and to reduce excise duty on “Non-filter cigarettes exceeding 60 mm but not exceeding 70 mm length” to Rs. 969/-per 1000 sticks. The request of the Tobacco Institute of India (TII) was examined and after taking into account all relevant factors, it was not found possible to accede to the request.

As per the 2010-2011 budget presentation, there is an increase in excise duty on non-filter cigarettes, not exceeding 60 mm in length, popularly called mini cigarettes, from Rs.75 per thousand to Rs.90 per thousand. Government also increased the excise duty on other categories of cigarettes. The increases range from Rs.20 to Rs.70 per thousand. There has been no increase in the excise duty on biris since 1993.Govt has increased the excise duty on biris from Rs.5 per thousand to Rs.6 per thousand. As per govt, the impact of this duty change on the retail price would only be 2 paise for a bundle of 20 biris. With regards to cigarettes, the increase would be 15 times more for every mini cigarette.

Source : frontierindia.net