West Bengal government imposes higher taxes on tobacco, alcohol

KOLKATA: While keeping other items untouched by not altering the tax rates, the West Bengal government on Monday raised the levies on alcohol and tobacco-related products.

West Bengal Finance Minister Amit Mitra tabling the Finance Bill for 2011-12 told reporters that under instruction from Chief Minister Mamata Banerjee, it had been decided not to impose additional burden on the people already reeling under high rates of inflation.

Mitra said that tobacco-related products like cigarettes, cigar and chewing tobacco had been included in Schedule D where tax rates would be higher than 13.5 per cent.

The enhanced tax rate on tobacco-related products would be finalised soon. However, beedi had not been included in Schedule D.

He said that foreign liquor and IMFL had been also placed in Schedule D where bottles sold at MRP would be taxed at 27 per cent from 23 per cent and without MRP at 50 per cent from 37per cent.

Mitra said that the entire philosophy was to make tax administration simple and efficient so that buoyancy increased.

The government would also reward honest businessmen and penalise the dishonest heavily.

Taxes levied on distribution of property among members had also been rationalised.

Mitra said all these efforts would mop up additional revenue of around Rs 6000 crore.