Cess on Cigarette to Cut Tobacco Farming

Source from:  financialexpress.com February 15, 2008  02/18/2008

Cigarette smokers may have to pay a cess of five paise for each stick they light, if a proposal of the Commerce Ministry to shift tobacco growers to other crops finds a place in the Union Budget. India needs to reduce tobacco cultivation under an obligation to the World Health Organisation, but it needs Rs 2,422 crore to shift at least 50% of the 96,865 farmers from this crop. The Commerce Ministry's proposal is to create 'FCV Tobacco Farmers Rehabilitation Fund' for financing the rehabilitation programme for the farmers. "The Commerce Ministry has estimated that Rs 2,422 crore would be required to facilitate exit of 50 per cent of the current 96,865 registered tobacco growers in the country," minister of state for commerce Jairam Ramesh said. Enditem