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 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 in the last 6 years.

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 Handbook on The Severe Consequences of High Cigarette Taxation in India

Spurt in illegal Cigarette Seizures in India

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

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

Latest Publications

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Infocus

The Severe Consequences of High Cigarette Taxation in India

Indo-China Tobacco Export Deal

FICCI Movement Against Smuggled and Counterfeit Trade

Regulators Should Have Dialogue with Business, says New EU Research

Latest News

14
Jun

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

Customs officials seize smuggled cigarettes worth Rs 55L [The Times of India]

Customs seizes ciggies worth Rs 1.5 cr [Deccan Herald]

Smuggled cigarettes worth Rs 1 crore seized from godown in Mumbai [Hindustan Times]

Tobacco sector major contributor to Indian Economy, says study [Millennium Post]

Industry body cautions against illegal cigarette tracking system [HeraldLive]_23052019

Imported cigarettes seized for violating labelling norms [Greater Kashmir]