Tobacco in highest tax bracket with cess

Companies & industry bodies did not wish to comment as the quantum of additional cess was not known

Tobacco will be subjected to the highest tax slab of 28% and an additional cess. The current rates of taxation on cigarettes and chewing tobacco are about 64% and 81%, respectively.

Companies and industry bodies did not wish to comment as the quantum of additional cess was not known.

UP IN SMOKE

• 800 mn kg: Total production
• 500 mn kg: Bidi & Chewing Tobacco consumption
• 75 mn kg: Cigarettes

Sources: Tobacco Board, Industry

The current tax structure was to accommodate Kerala’s request, which had pitched for 40% GST rate above the slab of