It is bad news for all delhites and visitors of Delhi who, love to smoke. Cigarette and other tobacco products are going to be costlier in the city. The city government has today proposed to increase tax on these products while presenting annual budget for 2009-10 in Delhi Assembly. But tourists and frequent travelers of Delhi can cheer as the hospitality in the city will be economical.
According to Finance Minister A K Walia of the city government 20 percent tax will be imposed on cigarette and tobacco products like gutkha etc. in the city. 12.5 percent tax is being charged on these products under the present system. According to Dr. Walia the governemt is expecting rupee 700 million through this increase. Though he says that the idea is not to just generate revenue but discourage people to smoke or use tobacco products in the city.
On the other hand tax has been reduced on Hotels from 12.5 percent to 10 percent. Considering the Commonwealth Games next year the step is important to increase number of tourists and encourage hospitality industry.