Tobacco May Get Costlier Next Fiscal

Source from:  TIMES NEWS NETWORK economictimes.indiatimes.com DECEMBER 13, 2006 12/14/2006

NEW DELHI: Tobacco and tobacco products may face value-added tax regime from next fiscal. With the Centre and the states working on a package to bring in items under additional excise duty (AED) under VAT, smoking and tobacco chewing may become just that bit more costly. Besides tobacco, textile and sugar attract AED. While the fate of textile and sugar is still being debated, there seems to be understanding between the Centre and states on tobacco products. Empowered panel chairman Asim Dasgupta said, "We would not be demanding VAT on all AED items but definitely on one or more of them." Enditem