Finance Minister Nirmala Sitharaman has announced a 16 per cent increase in customs duty on cigarettes. Finance Minister Nirmala Sitharaman made a statement on Wednesday, and the announcement was made in the Union Budget.
The finance minister said that taxes on cigarettes will be hiked by 16 per cent.
The announcement has had a negative impact on the shares of cigarette companies, including Godfrey Phillips India and ITC Ltd. The shares of both companies fell by over 5 per cent after the announcement by Sitharaman.
The net tax on cigarettes would increase by 0.07 per stick to 0.12 per stick, which would require a 1 3% price hike for cigarettes in the difference category. The hike in taxes is not very high and could be passed on by small increase of 1 -- 3% in prices, said ICICI Securities.
FM has announced a reduction in tax liabilities in a relief to the middle class.
Sandeep Agrawal Director Co-founder of Teamlease Regtech said that Union Budget 2023 -- 24 has reduced the tax liabilities for middle-class individuals with revisions to the number of tax slabs from 6 slabs to 5 slabs increase in the limits within each slab in the new tax regime. An individual with an annual income of up to Rs. 3 lakh won't have to pay any taxes as opposed to the earlier limit of Rs. It proposes a 5% tax for income between 03 06 Lakhs, 10% for income between 06 09 lakh, 15% for income between 09 12 lakh, 20% for income between 12 15 lakh and 30% above 15 lakh. For individuals with income up to Rs., there will be a 25% reduction in their tax liability. For individuals with income up to Rs. 9 lakh and around 20% reduction in tax liability. 15 lakh.