The Cabinet has approved to increase 15% VAT on per cigarette and further increase the existing production tax by another 5 rupees per cigarette.

The Department of Information stated that proposal made by the Cabinet Sub Committee appointed to look into this matter has received Cabinet approval.

Hence, price of a cigarette will be increased by 5 rupees in addition to 15% VAT.  

Accordingly, a cigarette will cost nearly 50 rupees.

In addition, the Cabinet has approved to increase the current Cess on imported Tendu leaves from 2 thousand rupees to 3 thousand rupees.