Budget 2023: Not only the heart, now the pocket will also burn cigarettes, the government has increased the tax, the rate will be expensive
highlights
In the 2020 budget, the NCCD on cigarettes was increased from 212 per cent to 388 per cent.
After this increase, the rate of low-cost cigarette packets was increased by 7 percent.
Shares of cigarette companies declined due to increase in tax in the budget.
New Delhi. Budget 2023 has brought bad news for the smokers. Now taking a puff of cigarette will become expensive. Finance Minister Nirmala Sitharaman (FM Nirmala Sitharaman) in her budget speech today announced to increase the tax on cigarettes (Cigarettes Tax Hike). The Finance Minister announced the imposition of 16 per cent tax on cigarettes. The National Calamity Contingent Duty (NCCD) on cigarettes has now been increased to 16 per cent. There was no change in the tax on cigarettes in the last two budgets. By increasing the tax on cigarettes, now its prices will increase.
Shares of other cigarette companies including Godfrey Phillips India and ITC Ltd fell after Finance Minister Nirmala Sitharaman announced an increase in tax on cigarettes in the budget for the financial year 2023-24. NCCD is a surcharge. Tobacco products like cigarettes attract GST, excise duty as well as NCCD. India is among 182 countries that have signed the World Health Organisation’s Framework Convention on Tobacco Control, which recommends a tax of at least 75 per cent of the retail price of all tobacco products.
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Tax was increased in 2020
Earlier in the 2020 budget, the NCCD on cigarettes was increased from 212 per cent to 388 per cent depending on the size of the cigarette. After this increase, the rate of low-cost cigarette packets had increased by 7 percent and the price of premium packets had increased by 5 percent.
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Shares fell up to 6 percent
The announcement of increasing tax on cigarettes led to a 5.73 per cent decline in the shares of cigarette maker Godfrey Phillips Share Price and the stock closed at Rs 1812.95. Golden Tobacco Share Price fell 4.88 percent to close at Rs 61.70 today. On the other hand, the share price of NTC Industries (NTC Industries Share Price) also closed at Rs 86.80 today after taking a dive of 2.80 per cent.
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Tags: budget 2023, business news in hindi, cigarettes, FM Nirmala Sitharaman, taxes
FIRST PUBLISHED : February 01, 2023, 19:59 IST
