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of <h1>States Gain Power to Impose Higher VAT on Tobacco Products with 2007 Taxation Law Amendment.</h1> The Taxation Law (Amendment) Act, 2007, effective from April 1, 2007, grants state governments the authority to impose sales tax on tobacco products, removing them from the category of 'declared goods.' The Act omits section 4 and the second schedule of the Additional Duties of Excise (Goods of Special Importance) Act, 1957, and amends the first schedule. This change allows states to levy VAT on tobacco products at rates higher than 4%, as tobacco is no longer listed under the Additional Duties of Excise or declared goods.
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