This Article is From Jul 11, 2014

Budget 2014: Duty on Cigarettes, Tobacco Hiked

Budget 2014: Duty on Cigarettes, Tobacco Hiked
New Delhi: When Union Finance Minister Arun Jaitley said in his budget speech, "I propose to increase the specific excise duty on cigarettes in the range of 11 percent to 72 percent", little did he know the impact it would have.

Even before he could finish his entire budget speech, this one decision swung some into action with some tobacco kiosks seeing a busy afternoon even on the hottest day in July. The announcement meant that a packet of cigarettes that could be purchased for Rs. 100 per pack, would now cost in the range of Rs. 111-Rs. 172 depending on the brand or category. When we asked people for their reaction to the hike in cigarette prices, there was a mixed response.

"I'm shocked. I have two options before me - to quit or to stock up and I'm currently at 50-50 on what to do. I think I'll stock up," said a college student.

Ajay, the shopkeeper said, "A cigarette that cost Rs 9-12 could cost anywhere up to 18-20 per stick now."

Another college student said, "I can't suddenly stop smoking so maybe I'll have to shift to a cheaper brand. Hopefully this will push me towards quitting it altogether!" It is a possibility medical professionals also agree with. Dr Sahadullah, Chairman and MD of the Kerala Institute of Medical Sciences told NDTV, "There is also a fear that since cost will escalate there might be inferior quality cigarettes with higher amount of benzene etc which can cause even further harm. But maybe this may help in cutting down the consumption levels per individual."

The move, though, has also got a pat on the back in equal measure, even catching the imagination of the virtual world with interesting and humorous tweets with some tongue in cheek remarks like these.

"#Budget2014 In the circumstances & constraints, adroitly handled. Big thrust to infra, FDI, rural development, royalty. & oh yes, sin taxes!" tweeted Baijayant Jay Panda of the Biju Janata Dal.

"Smoking is now more injurious to wealth. #Budget2014," tweeted a person with the Twitter handle @coolfunnytshirt.

As for those who felt their budget go up in smoke, fact is cigarettes in India are still cheaper compared to buying a packet in countries like the US, UK, France, Australia or New Zealand.

.