The Health Ministry will propose raising the portion of tax in retail prices for tobacco products to 70 per cent, the Indian Express reported.
Increases will be contained in the upcoming ministry budget proposal, according to the report on the newspaper’s website. The 70 per cent component is to include all forms of tobacco taxation, including value-added tax (VAT) and excise levies. VAT currently comprises 38 per cent of cigarette prices and state taxes account for about 10 per cent of bidi retail price, the Indian Express said.
Separately, the Indo-Asian News Service on 3 Jan reported the Supreme Court lifted a temporary lower court order handed down seven years ago that prevented government legislation regulating the size and number of tobacco advertisements in retail and warehouse outlets. Advertising board size was limited to 90 cm (2.95 ft) by 60 cm and the number to two per outlet, the news agency reported. (pi)