Excise hike on cigarettes risks rise in smuggling: Tobacco body

GOVT HIKES EXCISE DUTY ON CIGARETTES, LEVIES HEALTH CESS ON PAN MASALA FROM FEB 1

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The overall impact of the proposed hike in excise duty on cigarettes from February 1 will be "revenue neutral’, as it will further boost the "illegal and illicit" trade, industry body Tobacco Institute of India said Thursday.

Terming it as “unprecedented increase" in duty, TII, a representative body of leading cigarette makers like ITC, Godfrey Phillips India, and VST Industries, along with farmers, exporters and ancillaries of the cigarettes segment of the tobacco industry in India, said it is "shocked and surprised".

Tobacco Institute of India (TII) has requested the government to review the computations behind this extremely severe tax increase and reconsider the enormous hike, given the huge implications.