SHILLONG: The State Cabinet on Tuesday decided to increase the rate of tax on tobacco products from the existing 13.5 per cent to 20 per cent, a hike of 7.5 per cent.
Speaking to media persons after the Cabinet meeting, Dr Mukul Sangma argued that the decision to raise the tax on tobacco products would bring in additional revenue for the Government and at the same time discourage people from consuming tobacco and tobacco products.
He informed that the annual sale of tobacco products in the State comes to around Rs 60 crore out of which the Government is expected to earn around Rs 14-15 crore as tax.
Ruling out any imminent ban on tobacco products in the State, Dr Sangma said that the Government would need time to examine the matter.
The Chief Minister also called for clarity from the law enforcing agencies on which products would fall under the tobacco category, even as he pointed out that there are many mouth fresheners available in the market which is not considered as a tobacco product.