‘Vardhan tax’ threat sends ciggi prices north!
10 July 2014 5:46 AM IST
Expecting a massive hike in tobacco products in the upcoming union budget to be presented in Parliament on Thursday, vendors in the national capital have increased cigarette prices phenomenally. In fact, last week, health minister Harsh Vardhan had indicated and expressed a need for hike in taxes on tobacco products in the budget, to curtail usage of cigarettes.
A packet of cigarette which costs Rs 90 is being sold at Rs 105-125 in many areas of Delhi, especially GK, Saket, Connaught Place, Sarojini Nagar and Lajpat Nagar. Many cigarette brands are not available at the stores as a result of massive hoarding. Also for example a packet of Classic ultra-milds, which has the printed cost of Rs 170, is being sold at random rate, varying between Rs 180-250 depending on the locality.
In Connaught Place (CP), brands like Gold Flake, Marlboro and others are being sold at about Rs 30 higher than their actual current prices. Other costlier brands like Benson and Hedges, various brands of Wills Classic (Milds, Ultra Milds and Regular) are not available at many stores in the city.
At some places, per piece cost of these cigarettes has been increased from Rs 10 to Rs 12. The hoarders are waiting for the government to table the budget in Parliament, but before that they are making the most of it at the cost of the urban smoker.
Retail shopkeepers, however, blame the wholesale dealers for the rising prices and illegal hoarding of cigarettes. ‘We are not getting enough supply from the wholesalers. We are buying cigarettes at higher rates. There is a severe lack of supply and we suspect the wholesalers have started hoarding cigarettes,’ said Ram Kripal, a cigarette vendor at CP.
The traders also fear that increased taxes on cigarettes will adversely affect on the industry. ‘Unlike western countries, India has minimal tax imposed on cigarettes. The rise of taxes must be equally proportional to the per capita income. If India starts selling cigarettes which are made in UK, there will hardly be any buyer for costlier cigarettes,’ said Awadhesh Tyagi, a wholesale shopkeeper
selling cigarettes among other products.
A packet of cigarette which costs Rs 90 is being sold at Rs 105-125 in many areas of Delhi, especially GK, Saket, Connaught Place, Sarojini Nagar and Lajpat Nagar. Many cigarette brands are not available at the stores as a result of massive hoarding. Also for example a packet of Classic ultra-milds, which has the printed cost of Rs 170, is being sold at random rate, varying between Rs 180-250 depending on the locality.
In Connaught Place (CP), brands like Gold Flake, Marlboro and others are being sold at about Rs 30 higher than their actual current prices. Other costlier brands like Benson and Hedges, various brands of Wills Classic (Milds, Ultra Milds and Regular) are not available at many stores in the city.
At some places, per piece cost of these cigarettes has been increased from Rs 10 to Rs 12. The hoarders are waiting for the government to table the budget in Parliament, but before that they are making the most of it at the cost of the urban smoker.
Retail shopkeepers, however, blame the wholesale dealers for the rising prices and illegal hoarding of cigarettes. ‘We are not getting enough supply from the wholesalers. We are buying cigarettes at higher rates. There is a severe lack of supply and we suspect the wholesalers have started hoarding cigarettes,’ said Ram Kripal, a cigarette vendor at CP.
The traders also fear that increased taxes on cigarettes will adversely affect on the industry. ‘Unlike western countries, India has minimal tax imposed on cigarettes. The rise of taxes must be equally proportional to the per capita income. If India starts selling cigarettes which are made in UK, there will hardly be any buyer for costlier cigarettes,’ said Awadhesh Tyagi, a wholesale shopkeeper
selling cigarettes among other products.
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