Cigarettes to cost More, Pan Masala containing no Tobacco to Cost Less

Specific rates of excise duty on cigarettes are proposed to be increased by about 5 percent in the new Budget.

Presenting the General Budget 2007-08 in the Lok Sabha today, the Finance Minister also proposed a raise in excise duty on biris from Rs.7 to Rs.11 per thousand for non-machine made biris and from Rs.17 to Rs.24 per thousand for machine made biris.

Shri P. Chidambaram has reduced the excise duty from 66 percent to 45 percent on pan masala containing no tobacco. He also withdrew the exemption for pan masala containing tobacco and other tobacco products that is now given to units in the North Eastern States.

Source : Press Information Bureau

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