Cigarettes, gutka to cost more; mobile phones cheaper in Delhi

new delhi: cigarattes, gutka, pan masala (without tobacco), smoking mixture and other tobacco products will become costlier in delhi with a hefty 20 per cent luxury tax on these items imposed by the government which also slapped a 4 per cent sales tax on cng. presenting the delhi budget for 2002-03 in the assembly, finance minister m s saathi said gutka, pan masala with tobacco will be taxed at the rate of 50 per cent. however, bidi and tobacco used in hukkah have been exempted, he said. a four per cent tax has also been levied on foodgrains, cereals, pulses and processed foodgrains, cereals, pulses only when sold packed and only under a brand name, he said, adding wheat flour would continue to be exempted. the city government has, however, made mobile phones, lubricants, under-garments, paper, writing instruments and de-oiled cake (poultry feed) cheaper. the tax on mobile phones, writing instruments, under-garments (both having maximum retail price less than rs 100) and de-oiled cake has been slashed to zero per cent from 12 per cent, eight per cent, four per cent and de-oiled cake four per cent, respectively. while the tax on lubricants has been reduced from 20 per cent to 12 per cent, paper will be taxed four per cent less than the present rate of eight per cent.