GST Council decides to hike tax on cigarettes
Finance Minister Arun Jaitley on Monday announced that the GST Council has decided to increase cess on cigarettes. While 28% GST rate and 5% ad valorem remain, the additional cess will change as per cigarette length. The government will get â¹5,000 crore from the higher cess, which otherwise would've translated into profits of cigarette makers, or reduction in retail prices.