House panel moots additional 1% cigarette levy

In its report to the Rajya Sabha Chairman Wednesday, the standing committee on commerce asked the Commerce Department to discuss the levy with the Finance Ministry.

Written by Harikishan Sharma | New Delhi | Published: August 27, 2020 1:52:16 am
The panel, headed by YSR Congress’ Vijayasai Reddy V, advocated export incentives for tobacco and tobacco products on the lines of other agri goods. It asked the Centre to take steps to restart tobacco exports to China. (File)

A Parliamentary standing committee recommended the imposition of an additional 1 per cent levy on the sale of cigarettes in order to mobilise resources for supporting tobacco farmers.

In its report to the Rajya Sabha Chairman Wednesday, the standing committee on commerce asked the Commerce Department to discuss the levy with the Finance Ministry.

“The Committee appreciates the suggestion of (the) Tobacco Board and recommends the Department to engage in consultations with (the) Ministry of Finance to impose a levy of 1 per cent on the sale of cigarettes which may be utilized as ‘Market Stabilization Fund’ for tobacco,” stated the report.

The panel, headed by YSR Congress’ Vijayasai Reddy V, advocated export incentives for tobacco and tobacco products on the lines of other agri goods. It asked the Centre to take steps to restart tobacco exports to China.