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.

Officials said they purchased eight suparis and various scented tobacco from six brands on the online portals. (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.

Harikishan Sharma

Harikishan Sharma, Senior Assistant Editor at The Indian Express' National Bureau, specializes in reporting on governance, policy, and data. He covers the Prime Minister’s Office and pivotal central ministries, such as the Ministry of Agriculture & Farmers’ Welfare, Ministry of Cooperation, Ministry of Consumer Affairs, Food and Public Distribution, Ministry of Rural Development, and Ministry of Jal Shakti. His work primarily revolves around reporting and policy analysis. In addition to this, he authors a weekly column titled "STATE-ISTICALLY SPEAKING," which is prominently featured on The Indian Express website. In this column, he immerses readers in narratives deeply rooted in socio-economic, political, and electoral data, providing insightful perspectives on these critical aspects of governance and society. ... Read More

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cigarette consumption