The amount of excise duty collected from chewing tobacco IncludingKara Masala, Kimam etc. during 2008-09 and 2009-10 is Rs. 916.63 crore and Rs. 1062.05 crore respectively.

The excise duty collections from other tobacco varieties and products like cigarettes, bidis, cigars for the years 2008-09 and 2009-10 is Rs. 9798.75 crore and Rs. 10045.35 crore respectively.

         The total excise collections from all the tobacco in the years   2008-09 and 2009-10 is Rs. 13300.31 crore and Rs. 13853.29 crore respectively.                           

        Excise duty is a levy on manufacture and tobacco farmers are not subject to this levy.  There is no proposal to extend cash subsidies to growers to meet input and labour cost.

This information was given by the Minister of State for Finance, Shri S.S. Palanimanickam in a written reply to an Unstarred Question raised in Rajya Sabha today.

Excise duty on tobacco: collections increased and levy applies to manufacturers not growers, with no subsidy proposal. Excise duty collections on tobacco products increased, with separate receipts reported for chewing tobacco and for other tobacco products and an aggregated higher total in the later year. The statement clarifies that excise duty is a tax on manufacture and tobacco growers are not liable to the levy, and that there is no proposal to extend cash subsidies to growers for input or labour costs.