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Feb 15th, 2008 - 13:18:30

Ramadoss asks FM to increase taxes on tobacco products


Feb 15, 2008, 13:15

New Delhi, Feb 15: Concerned over the devastating effects of tobacco on the country's health, Union Health Minister Anbumani Ramadoss has asked Finance Minister P. Chidambaram to increase the taxes of all tobacco products.

In a letter to the Finance Minister, Ramadoss asked him to raise excise duties on cigarettes, bidis and other tobacco products in the coming budget so that higher prices can act as a deterrent for tobacco users.

The Health Minister has also asked for a change in the number of tax slabs for cigarettes. At present cigarettes have seven different tax slabs.

The letter also called for relook into the taxation system on gutkas.

At present what exists is a lump-sum tax scheme for gutka manufacturing under which they can deposit upto Rs. 12 lakh a month as tax per packaging machine.

Ramadoss has been at the forefront of a campaign for putting pictorial warnings on tobacco products so that users are deterred from using them.

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