Tobacco India Representative Body of Tobacco Industry

01Tobacco consumption pattern in India is unique

Legal cigarettes account for just 10% of overall tobacco consumed in India. The balance 90% 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

Read our latest Media Release on Inclusion of Tobacco Farmers and other Industry Stakeholders in the Official Indian Delegation to the Geneva FCTC COP8

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

India’s COP8 Delegation should Include Industry Stakeholders, Says TII

Global Adult Tobacco Survey 2016-17

Sustainable Tobacco Farming & Livelihood Challenges in India

Curb Cigarette Smuggling in India: FAIFA to Government

Latest News

15
Sep

2018

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

West Bengal: DRI arrests two for ‘smuggling cigarettes’ worth Rs 1.86 crore [binj.in]

DRI seizes cigarettes, saffron worth Rs 2.73 cr [ The Indian Express]

Imported cigarettes seized [The New Indian Express]

Assam: Police seize huge consignment of cigarettes smuggled from Myanmar in Karimganj [India Blooms]

E-cigarette ban a half measure, with little legitimacy [The Financial Express]

Tobacco finds favour with Prakasam ryots [The Hindu]