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

As per data available up to 2016-17, cigarette taxes on a per kg basis of tobacco consumption are 55 times higher than the other tobacco products consumed in India.

Incidence of taxes on cigarettes after accounting for the GST Cess increase has trebled between 2012-13 and 2017-18.

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 around Rs.39,000 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 Publishes Third Edition of its Handbook on Illegal Cigarette Trade in India

Read our latest Handbook on The Severe Consequences of High Cigarette Taxation in India

Spurt in illegal Cigarette Seizures in India

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

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

Latest Publications

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Infocus

Illegal Cigarette Trade Poses a Huge Threat to India

The Severe Consequences of High Cigarette Taxation in India

Indo-China Tobacco Export Deal

FICCI Movement Against Smuggled and Counterfeit Trade

Latest News

11
Jul

2019

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

Pune Crime: Customs seize illegal foreign cigarettes worth Rs 14.40 lakh [Midday]

Bengaluru: 10L smuggled foreign cigarettes worth Rs 2cr seized[The Times of India]

Andhra Pradesh farmers demand better prices for low-grade tobacco [Hindu Business Line]

Issues of tobacco farmers raised in Rajya Sabha [Business Standard]

India pushes for tobacco exports to China [Millennium Post]

Vadodara police arrested one for selling various brands of foreign cigarettes without any statutory warnings [dailyhunt]