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Union Budget 1970: When Indira Gandhi took a jibe at smokers in budget speech

BusinessToday.In     July 5, 2019

Union Budget 2019: The 1970-71 Union Budget was presented by Prime Minister Indira Gandhi who was also the Finance Minister during that time for a year. Among a host of announcements, Gandhi also "touched" the "smoker's pocket". In her speech, she apologised for altering the prices for cigarettes. "I am sorry that the smoker's pocket has to be touched once again. The duty on cigarettes is being enhanced with the increase ranging from 3 per cent to 22 per cent ad valorem depending on the value slabs. The cheaper varieties of cigarettes will go up by only one or two paise per packet of 10 cigarettes," she announced.

Gandhi then proceeded to poke fun at the smokers and said, "Assuming that the smoking community remains steadfast in its devotion, the additional revenue from this measure will be Rs.13. 50 crore."

The former finance minister had also increased the scope of ad valorem duty levied on prepared and preserved foods to vegetable juices, synthetic syrups and sherbets, dehydrated peas, malted foods, instant coffee, instant tea, jelly crystals, custard and ice cream powders, biscuits, cocoa powder, drinking chocolate, pasteurised butter, processed cheese, branded aerated water, glucose and dextrose.

She continued to make fun in good humour and said, "I hope the honourable members will not accuse me of having preferences of my own as. Even under my proposals, aerated waters, biscuits, butter and cheese will be taxed only when manufactured with the aid of power and there will be total exemption from tax for baby foods and branded 'deshi' ghee. These proposals will yield an additional revenue of Rs 8.68 crore."  

As the first full-time Finance Minister Nirmala Sitharaman is set to present the Union Budget on July 5, it remains to if she takes any tips from the former Finance Minister Indira Gandhi.

Also read: Union Budget 2019: When and where to watch LIVE coverage of budget

Also read: Budget 2019 LIVE updates: Nirmala Sitharaman to present her maiden budget today; here's what to expect

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