Cigarettes to cost more in Mizoram

Cigarettes may cost more in Mizoram after a few months as the tax department will propose a hike in value added tax from 13.5 per cent to 20-25 per cent on this commodity.

Principal Secretary for Taxation R L Rinawma said that a recent meeting of Mizoram Smoke Free Group, chaired by Chief Minister Lal Thanhawla proposed to hike the VAT on cigarette and authorised the State Taxation Department to make a formal proposal. He said the department was likely to increase the VAT levied on cigarettes to 20 to 25 per cent as it was around 30 to 50 per cent in other States. Jane R Ralte of the Mizoram State Tobacco Control Society said that the initial proposal placed before the Mizoram Smoke Free Group was for 65 per cent as was being done in Rajasthan. The Taxation Department also intended to make proposals on increased taxes on imported cigarettes.