India Raises Tax on Cigarettes


JULY 18, 2017

New Delhi. India has raised the total tax on cigarettes resulting in an increase of as much as 792 rupees ($12.31) for every 1,000 cigarettes, adding about 50 billion rupees in revenues for the government, Finance Minister Arun Jaitley said.

The higher rate will be effective from Tuesday (18/07), Jaitley told reporters in New Delhi on Monday (17/07).

The new tax rate is part of a new Goods and Service Tax unveiled on July 1 in the country's biggest tax reform in the 70 years since independence.

After GST was rolled out, cigarettes initially became cheaper because the total tax burden had come down by about 6-7 percent. The tax was increased after an uproar from anti-tobacco and several health groups.