Lucknow: Cigarette smoking and consumption of other tobacco products will become costlier in Uttar Pradesh as the State government on Wednesday decided to hike Value Added Tax (VAT) on them besides banning sale of loose cigarettes in the market.
“Cigarettes will become costlier as smoking causes health hazards... sometimes the poor, labourers and farmers also face such problems and because of this also the Cabinet has decided to hike VAT rates,” Chief Minister Akhilesh Yadav said after a meeting.
Besides, it decided to ban sale of loose cigarettes in open market and issue a notification in this regard.
“A decision has been taken to ban sale of loose cigarettes in the market and issue a notification in this regard like Uttrakhand and other governments. Action could be taken against those violating orders,” a government official said.
The Cabinet has decided to hike VAT on cigarettes from 25 per cent to 40 per cent and on pan masala and gutkha from 30 per cent to 40 per cent.
The hike in the VAT on these products will earn an additional revenue of Rs 200 crore for the state, he said.- PTI
