DELHI: Tobacco farmers have urged Chief Minister, Siddaramaiah, to reduce tax on cigarettes in coming state budget.
In a press conference President of Federation of Karnataka Virginia Tobacco Growers’ Association, Javare Gowda, said the State Government should reduce the VAT (value added tax) on cigarettes from the existing 17 per cent to 12 per cent to sustain domestic demand and protect the farmers’ livelihood.
Recalling that the State Government was resorting to increase the tax on cigarettes every year by at least two per cent, Mr Gowda said the high tax rates on cigarettes will also spark off an increase in the sale of illegal cigarettes. “India is the fifth largest market for illegal cigarettes in the world. This is causing a huge loss to the exchequer”, he said.
Every year, the State Government has been increasing the VAT by two per cent. “The State Government increased the VAT on cigarette from 15 to 17 per cent last year. Now, we request Mr. Siddaramaiah to bring it down to at least 12 per cent,” Mr. Gowda said.
