Governor seeks tax hike to cut tobacco consumption

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The Jammu and Kashmir governor N N Vohra on Tuesday sought an increase in tax on tobacco products to bring down their consumption.

According to a government spokesman, Vohra has written a letter to Finance Minister Haseeb Drabu in which he has urged him to increase tax on tobacco products from the present 40 % to at least 65% to secure a significant decrease in tobacco consumption.

“The Governor has observed that Rajasthan and Punjab have increased taxes on tobacco products to 65% and 55 % respectively,” he said in the letter.

In J&K, he said, consequent to the increase in the tax from 13.5 % to 40 % on tobacco products, the level of tobacco consumption is reported to have significantly gone down, especially among the youth.

This, he said, has also generated threefold increase in the revenue earned.

“In this background he has called upon the Finance Minister to raise the tax level to 65%,” he said in the letter.

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