Punjab taxes smokers for cancer fund

While presenting the Rs 69,051.78 crore budget for the financial year,Dhindsa,Taking a cue from other states,announced a steep 30 per cent hike in VAT on cigarettes from 20.5 per cent with 10 per cent surcharge to 50 per cent with 10 per cent additional surcharge. Citing surveys,he said an increase of 10 per cent tax leads to a decline in consumption by four to eight per cent. Income of Rs 100 crore from the hike (in VAT on cigarettes) will go into cancer and drug de-addiction fund being established by the Health and Family Welfare Department, Dhindsa said. The Rs 300 crore fund would also come from levy on sale and allotment of properties and construction works taken by the government and its agencies.

Presenting Punjabs first pictorial budget replete with photographs of the CM Parkash Singh Badal and Deputy CM Sukhbir Badal,Dhindsa doled out concessions for senior citizens,children and the poor by abolishing 5.5 per cent VAT on select items concerning them.