The Tobacco Institute of India | Representative Body of Tobacco Farmers, Cigarette Manufacturers, and Tobacco Exporters in India

01Tobacco consumption pattern in India is unique

Legal cigarettes account for just 11% of overall tobacco consumed in India. The balance 89% of consumption is represented by traditional products like chewing tobacco, bidis, khaini etc. and illegal cigarettes.

This is unlike the rest of the world where tobacco is synonymous with cigarettes, representing 90% of tobacco consumption.

02Legal Cigarettes are subject to high & discriminatory taxation in India

Cigarette taxes on a per kg basis of tobacco consumption are 51 times higher than the other tobacco products consumed in India.

The cumulative growth in rates of tax on cigarettes, after cognising for the latest increase in rates of GST Compensation Cess, is a staggering 202% since 2011-12.

03Tobacco is a very important commercial crop in India

India is the world’s 2^nd largest producer and a major exporter of tobacco. With an estimated annual production of 800 million kgs., tobacco is an extremely important commercial crop in the country, providing livelihood to 45.7 million people.

Tobacco products generate significant tax revenues amounting to more than Rs.34,000 crores annually.

04The Growth of illegal Cigarette trade poses serious threat in India

Illegal Cigarette trade accounts for as much as 1/4^th of the Cigarette Industry in India, causing an annual revenue loss of Rs. 13,000 crores.

Extremely high and constantly increasing tax rates on Cigarettes provide a profitable opportunity for tax evasion thereby encouraging growth in illegal trade.

Recent Additions & Highlights

TII brings out New Publication on Sharp Growth in Illegal Trade in India

Read our New Handbook on Sustainable Tobacco Farming and Livelihood Challenges in India

Spurt in illegal Cigarette Seizures in India

The latest issue of TII Tobacco News is now available under Publications

Latest Publications

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Infocus

Curb Cigarette Smuggling in India: FAIFA to Government

Roll Back Increase in GST Cess on Cigarettes: Farmers Appeal to Govt.

Tobacco Growers Demand Protection for Livelihood

New Study on Illicit Trade, Terror Financing & Organized Crime

Latest News

18
Apr

2018

The Tobacco Institute of India (TII) is a representative body of manufacturers, farmers, exporters and ancillaries of the cigarettes' segment of the tobacco industry in India.

Tobacco Industry provides livelihood to 45.7 million people including farmers, farm labour, rural poor, women, tribals etc.

India has a unique pattern of tobacco consumption with Legal Cigarettes accounting for just 11% of overall tobacco consumed.

The combined tax revenue collected from tobacco products is more than Rs. 34,000 crores annually. Legal Cigarettes contribute 87% of tax revenue despite just 11% share of tobacco consumption.

Illegal Cigarette trade accounts for one fourth of the Cigarette Industry in India, resulting in a revenue loss of more than Rs. 13,000 crores annually.

Enforcement and surveillance efforts of the Govt. have led to increased seizures of illegal cigarettes.

Growing Illegal Cigarette Trade in India is adversely affecting the Livelihood and Earnings of Tobacco Farmers.

WHO Framework Convention on Tobacco Control (FCTC) Proposals are a threat to the livelihood of Tobacco farmers in India.

01Tobacco consumption pattern in India is unique

02Legal Cigarettes are subject to high & discriminatory taxation in India

03Tobacco is a very important commercial crop in India

04The Growth of illegal Cigarette trade poses serious threat in India

Recent Additions & Highlights

Latest Publications

Infocus

Latest News

Tobacco tax zealots are now changing their tune [Scoop]

Seized cigarettes, liquor disposed [The Sangai Express]

Illicit tobacco trade dented economy [The Nation]

Asian Tobacco Growers gather in Lombok, Indonesia to debate latest industry challenges [ACN Newswire]

Tobacco warnings to continue [The Telegraph]

Incidents of cigarettes tobacco smuggling jump 136% in 2 yrs: FICCI [Business Standard]