SHILLONG, DEC 10: Cabinet on Tuesday approved seven per cent hike in taxes of tobacco and tobacco products to raise an additional revenue of about Rs 85 crore. The decision has also been taken to discourage people from their tendency of using tobacco and tobacco products which is considered as the reason for high prevalence of cancer rate.
Chief minister Mukul Sangma told reporters after the cabinet meeting, “The cabinet has approved the proposal to raise tax from 13.5 per cent to 20 per cent on tobacco and tobacco products.” He said the hike is also an initiative to discourage people from using tobacco and tobacco products which are considered to be the reasons behind high prevalence rate of cancer.
The hike would help the government exchequer to generate additional income of about Rs 15 crore per year. The total revenue from tobacco and tobacco products export fees on all these items is about Rs 60 – 70 crore a year, Sangma informed.
The state government has also ruled out blanket ban on tobacco and tobacco products at the moment as the state health department is examining on presentations made before the department on classification of different tobacco and non-tobacco products.
“The cabinet has instructed that there should be complete clarity so that the enforcing agencies will know how to draw the line between various other products which are also somehow misconstrued misinterpreted as tobacco products,” Sangma said.- By Our Reporter
Increasing tax on tobacco and tobacco products is well and good. As opined by the Chief Minister to discourage people from using tobacco and tobacco products as it causes cancer is appreciable. It will be the best thoughts/concern on the part of the cabinet if tax on alcohol is also hiked. Alcohol is not only health hazard but it has ruined several families and the ambience. Those who have ears let them hear.
I