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Goa imposes luxury tax on tobacco products

The Goa Assembly has passed an amendment bill, imposing 25 per cent luxury tax on chewing tobacco, including gutkha, and 5 per cent similar tax on other tobacco products other than bidis and snuff.

The Goa Tax on Luxuries (Hotels and Lodging Houses) (Amendment) Bill 2001, moved by Chief Minister Manohar Parrikar, was passed by voice vote on the last day of the four-day winter session on Monday.

The bill said tobacco, including chewing tobacco and gutkha are known to contain carcinogenic substances which cause cancer.

The House also passed the Goa Entertainment Tax (Amendment) Bill 2001, moved by Parrikar, for amending the provisions to cover river cruise, boat cruise and casinos of all kinds within the definition of entertainment.

In 1998, the Panaji bench of Bombay high court had held river cruises to be a medium of entertainment.

The bill also aims at amending the provisions in the Act to give relief to proprietors of cinema theatres by allowing service charges of Rs 2 per ticket or 10 per cent of payment of admission, whichever is less, towards maintenance and providing facilities and safety measures, and exempt such charges from the payment of entertainment tax.

It also provides for appointment of additional commissioner of entertainment tax.

UNI

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