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These tobacco shops are affecting the government coffers, they receive the highest tax.

Sagar Patel

By Sagar Patel

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Tobacco exporters have requested the government to implement the RODTEP duty drawback system in this sector as well to promote exports. In a meeting with Commerce and Industry Minister Piyush Goyal in Hyderabad on Saturday, traders said tobacco exporters are not covered under any scheme providing export incentives. The ministry said in a statement that it has requested to support tobacco exporters by including them in the RoDTEP scheme. He also sought the government’s help to stop the unauthorized production and use of chewing tobacco in India. Due to this, the exchequer is suffering huge losses.

record broken

He also said that the sale of illegal cigarettes has increased. The Remission of Duties and Taxes on Exported Products Scheme (RoDTEP) provides for the reimbursement of taxes and duties paid by exporters in the process of manufacturing and distribution of goods. At the meeting, Goyal said that the value of exports of unmanufactured tobacco and its products has broken all records and reached Rs 12,005.80 crore ($1.5 billion).

The government uses this money here.

Just after the budget session last year, Minister of State in the Ministry of Finance Pankaj Choudhary said that the government had collected Central Goods and Services Tax of Rs 19,000 crore (19,328.81) in the financial year 2022-23. Which was more than Rs 17 lakh (17,078.72) crore as compared to the fiscal year 2021. According to the government, the tobacco tax collection is used for awareness programmes etc. related to tobacco. The government allocated Rs 83,000 crore to the Department of Health and Family Welfare for the last financial year i.e. 2022-23.

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It was mentioned in last year’s budget.

Finance Minister Nirmala Sitharaman had announced a 16% increase in tax on cigarettes in the general budget last year. In that budget, the government had also increased the National Contingent Disaster Service (NCCD) on paan-masala, beedi cigarettes. The last time the government changed the taxes was in the 2020 budget. Due to this decision of the government, a record increase in the collection in the form of tax was seen in the central exchequer. You will be surprised to know that after diesel, petrol and iron and steel, the government gets the highest tax on products like cigarettes.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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