GST council set to increase cess on cigarettes

According to PTI, Union Finance Minister Arun Jaitley on Monday announced that the GST Council has decided to increase the 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 Rs 5,000 crore from the higher cess, which otherwise would've translated into profits of cigarette makers, or reduction in retail prices.

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