Budget 2019: Cigarettes, Tobacco Items to Become Costlier as Government Hikes Excise Duty

New Delhi: Cost of cigarettes will be dearer as government proposed changes in excise duty rates in the union budget presented by union Finance Minister Nirmala Sitharaman.

According to the Budget proposals, basic excise duty of Rs 5 per thousand will be added while duty on hookah and bidis have also been slightly increased.

India imports most of its cigarette and other lighters from various countries including China, Japan, Spain, France and Germany. Custom duty is levied by the government on all the lighters and other lighter parts that are imported into the country.

Custom duty on gas filled non-refillable pocket lighters is 20 per cent and IGST is 18 per cent. Same custom duty and IGST is also levied on other lighters including gas filled re-fillable lighters and electronic lighters.

The custom duty on lighters in the Union Budget 2018 was increased from 10 per cent to 20 per cent, increasing the price of all lighters.