Talking to reporters on the sidelines of an on-going relay hunger strike by state Congress leaders at the party headquarters here, he said it was "most shameful and senseless decision" of the state government led by Parkash Singh Badal.
The Congress leader claimed that the decision was taken under pressure from tobacco companies due to declining sales of cigarettes in the state.
The Punjab Cabinet on January 20 had rolled back VAT on cigarettes from 50 per cent to 20.5 per cent (plus 10 per cent surcharge) to check smuggling from neighbouring states.
Bajwa said ridiculous justification was being made by the state government that the money earned from sale of cigarettes would be spent on cancer patients.
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He said free sale of tobacco products, drugs and liquor on road sides had become the hallmark of the SAD-BJP regime.
Meanwhile, Congress leader Chaudhary Jagjit Singh who, along with Congress MLAs Charanjit Kaur Bajwa and Karan Kaur, observed day-long fast said the Congress would continue its stir against the drug menace in Punjab even if a CBI inquiry is ordered.