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GST: Modi govt raises tax on cigarettes

The higher rate will be effective from July 18, Jaitley told reporters in New Delhi on Monday.

Reuters 

Photo: Shutterstock
Photo: Shutterstock

  India has raised the total tax on cigarettes resulting in an increase of as much as Rs 792 ($12.31) for every 1,000 cigarettes, adding about Rs 5000 crore ($777 million) in revenues for the government, finance minister said.

The higher rate will be effective from July 18, Jaitley told reporters in New Delhi on Monday.

The new tax rate is part of a new Goods and Service Tax (GST) unveiled on July 1 in the country's biggest tax reform in the 70 years since independence.

After was rolled out, cigarettes initially became cheaper because the total tax burden had come down by about 6-7 percent. The tax was increased after an uproar from anti-tobacco and several health groups.

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