40% VAT hiked on all Tobacco types

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There is bad news for smokers as cigarettes will cost more in UP as the state government has increased VAT on all kinds of tobacco, including cigar and ‘khaini’, up to 40 per cent besides imposing a ban on sale of loose cigarettes.

This decision was taken in the Cabinet meeting held here on Wednesday.

The official spokesman said that the Cabinet agreed to issue a notification banning sale of loose cigarettes in the state.

He said that more than 70 per cent smokers in the state purchased loose cigarettes, and such sale was in violation of the Cigarettes and Other Tobacco Products Act (COTPA) of 2003.

As per the provision of Section 20 of the COTPA, vendors as well manufacturers are punishable with imprisonment up to two years and/or a find up to Rs 5,000 for sale of loose cigarettes and if the offence is repeated, the jail term could increase to five years with a fine of Rs 10,000.

“The Cabinet has approved strict action against the erring persons,” the spokesman said.

The government has also increased VAT on all tobacco products, barring bidi, up to 40 per cent. The list also includes non-tobacco pan masala. 

The government will earn additional Rs 200 crore from this decision, the spokesman added.

The Cabinet also approved a naxal rehabilitation scheme under which the surrendered Naxalites would be kept in a rehabilitation camp for three years where they would be imparted vocational training. During that period, Rs 4,000 would be given to them per month.

“The Naxalites will be screened by a district-level committee and it will be ensured that the surrendered Naxalite does not return to anti-national activities,” the spokesman said, adding that this scheme was an extension of the Central government-sponsored Security Related Expenditure. 

This scheme is in place in Bihar, Jharkhand, Madhya Pradesh and Andhra Pradesh.

The government has also decided to renovate dilapidated tehsil buildings in 10 districts of the state. Where the buildings are in a bad shape, they would be demolished and where renovation is required, it would be done, the spokesman said.

The government also approved its 10 per cent share in Deen Dayal Upadhayay Gram Jyoti Yojna under which identified villages would be electrified. 

The Cabinet also approved construction of 18 labs. It also purchase of 67 mobile vans.

In an attempt to extend relief to sick sugar mills, the government approved guarantee of Rs 139.30 crore for 22 sugar mills for next five years. 

The money will be transferred by UP Cooperative Banks and District Cooperative Banks.

With a view to improve quality of education at village level, the government has decided to start 191 model schools under private and public sectors. 

These schools will come under Directorate of Secondary Education. 

The government also decided to operate state-run ashram schools on the pattern of Navodaya Vidyalaya and they would be attached with the CBSE. 

There are 56 ashram schools in UP. These schools are set up in Scheduled Caste dominated localities.

In another decision, the government decided to purchase 500 more ambulances to operate under the 108 project. The Government approved Rs 15 crore as mobilisation advance. These ambulances would be distributed among districts as per requirement.

Daily Pioneer
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