Budget 2016: Cigarettes, Gutkha other tobacco products become expensive

Budget 2016: All types of tobacco products will become more expensive next year

By: Express Web Desk | New Delhi | Updated: February 29, 2016 3:42 pm
Indian Finance Minister Arun Jaitley arrives at parliament house to present federal budget 2016-17, in New Delhi, India, Monday, Feb. 29, 2016. It was Jaitley’s second full budget since Prime Minister Narendra Modi won a huge majority in national election in 2014, on the back of promises to turn around the economy and boost job creation. There have been few sweeping reforms in the past two years that the government has been promising. (AP Photo/Manish Swarup) Finance Minister Arun Jaitley arrives at parliament house to present federal budget 2016-17, in New Delhi  (AP Photo/Manish Swarup)

Finance Minister Arun Jaitley has hiked the excise duty on tobacco and its related products by 10-15 per cent. Jaitley made the announcement in his budget speech on Monday.

“To discourage consumption of tobacco and tobacco products, I propose to increase the excise duties on various tobacco products other than beedi by about 10 to 15 per cent,” Jaitley said.

Watch Budget 2016: Editors First Take on Arun Jaitley’s Announcements

Here are the details:

Excise duty on Cigar and cheroots being increased – from 12.5% or Rs 12.5% or Rs 3375 per thousand, whichever is higher to 12.5% or Rs 3755 per thousand, whichever is higher

Excise duty on Cigarillos being increased from 12.5% or Rs 12.5% or Rs 3375 per thousand, whichever is higher to 12.5% or Rs 3755 per thousand, whichever is higher

Excise duty on Cigarettes of tobacco substitutes being increased from Rs 3,375 per thousand to Rs 3,755 per thousand

Excise duty on Cigarillos of tobacco substitutes being increased from 12.5% or Rs 12.5% or Rs 3,375 per thousand, whichever is higher to 12.5% or Rs 3755 per thousand, whichever is higher

Excise duty on other forms of tobacco substitutes being increased from 12.5% or Rs 12.5% or Rs 3,375 per thousand, whichever is higher to 12.5% or Rs 3755 per thousand, whichever is higher

Excise duty on Gutkha, chewing tobacco (including filter khaini) and jarda scented tobacco being increased from 70% to 81%

Excise duty on Unmanufactured tobacco being increased from 55% to 64%

There’s also an additional duty of excise on cigarettes. All numbers per thousand

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Non filter not exceeding 65 mm. from Rs 70 to Rs 215

Non-filter exceeding 65 mm but not exceeding 70 mm. from Rs 110 to Rs 370

Filter not exceeding 65 mm. from Rs 70 to Rs 215
Filter exceeding 65 mm but not exceeding 70 mm. from Rs 70 to Rs 260

Filter exceeding 70 mm but not exceeding 75 mm. from Rs 110 to Rs 370

Other from Rs 180 to Rs 560

Read more on the budget here

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