Tobacco Board urges FM to reduce tax hike
image for illustrative purpose
New Delhi: Tobacco Board, under the administrative control of the Department of Commerce, has written a letter to Finance Minister Nirmala Sitharaman highlighting the adverse impact of the unprecedented increase in excise duties on cigarettes on the industry, as well as on millions of farmers and workers.
The excise hike effective February 1 has resulted in a price increase of up to 60 per cent in real terms.
Steep tax increases heightened risk of accelerated illicit cigarette trade, which has emerged globally as a serious economic and governance challenge.
The unregulated market deprives governments of substantial tax revenues, undermines legitimate businesses, fuels organised criminal networks, and poses risks to public health and security.
