The union finance minister Arun Jaitley today proposed a higher sin tax on tobacco products like cigarettes, gutka and pan masala thus making these tobacco product even costlier and thus eventually helping people quit tobacco for good.

The proposed increase in the taxation on tobacco products in today’s Union Budget is as follow:

  • The excise duty on cigarette & pan masala is increased from 12% to 16%
  • The excise duty on unmanufactured tobacco is increased 50% to 55%
  • The excise duty on chewing tobacco and gutka is increased from 60% to 70%

As an impact, the tobacco products of all categories are likely to be increased sharply causing, ultimately making those of tobacco addict quit tobacco who can not otherwise afford costly tobacco products.

Increase in tobacco price is decrease in tobacco consumption:-

The World Health Organization (WHO) time by time, keeps reiterating to governments to increase tobacco taxes to curb its consumption and it firmly believes that such increase on taxes or tobacco prices has greatly helped them reduce global tobacco consumption, especially in low and middle income countries like India.

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