In a written answer to an issue raised in Lok Sabha on Friday, Minister of State for Health and Family Welfare, S Gandhiselvan stated that presently, the rate of Central Excise duty on key brands of cigs figured on the maximum retail price of the product ranges from 28% to 69%.

The rate would be even higher when computed on factory gate costs.

Besides, cigs bear state taxes like value-added tax, tariff etc.

In the 2010-11 financial plan, the administration has raised the necessary excise duty on all tobacco items, apart from beedis, by about 20%.

Chewing tobacco, unmanufactured tobacco and Jarda scented tobacco have been brought under the purview of compounded tax plan in which the excise duty is paid based on the amount of machines set up in the factory of fabrication.

Gutkha is already under the combined tax system since July 2008. Besides, a few States also charge value-added tax on tobacco items.

The health cost of only three tobacco attributable illnesses, viz. cancers, lung problem and cardio vascular disease was figured in that expenditure at Rs 30,833 Crore (2002-03).

According to the report, Tobacco Control in India - 2004, approx 8-9 lakh people die yearly owing to illnesses attributable to tobacco use.