Retailers Call For Rethink After Steep Tobacco Tax Hike
Indian retailers have asked the government to reconsider a sharp hike in excise duty on tobacco products, warning it could hurt small businesses and boost illicit trade, according to FRAI.
Indian retailers have asked the government to reconsider a sharp hike in excise duty on tobacco products, warning it could hurt small businesses and boost illicit trade, according to FRAI.
While the exact impact under new tax structure is still evolving, the higher levy is likely to force companies such as ITC and their peers to raise prices
The House has also cleared the Health Security se National Security Cess Bill, 2025, which introduces a dedicated cess on pan masala and other notified sin goods
The Central Excise (Amendment) Bill, 2025, seeks to replace the GST Compensation cess, which is levied on all tobacco products currently
To make up for the immediate revenue loss, some state governments are asking for a significant share in the new taxation on the tobacco products
The report says that export growth might remain muted in the current fiscal year due to likely higher production in key international markets:
The latest Household Consumption Expenditure Survey 2022-23 indicates a notable rise in the consumption of paan, tobacco, and intoxicants over the past decade, with people allocating a larger portion of their income to these products. The survey, conducted by the National Sample Survey Office from August 2022 to July 2023, reveals that in rural areas, […]
The World Health Organisation on Tuesday called on countries in the Southeast Asia Region to intensify efforts to control the use of tobacco and e-cigarettes, according to an official statement. It noted that despite the steep decline over the years, tobacco consumption in the region continues to be the highest globally and vaping is on […]
Manufacturers of pan masala, gutka and similar tobacco products will be subject to penalties of up to Rs 1 lakh if they fail to register their packing machinery with GST authorities, effective 1 April. The aim is to combat revenue leakage in the tobacco manufacturing sector, as per amendments introduced in the Finance Bill, 2024, […]
Tobacco maker Godfrey Phillips India reported higher third-quarter profit on Monday, driven by growth in its core market and easing expenses. The company reported a consolidated net profit of Rs 212 crore for the quarter ended 31 December, up 6.6 per cent from last year. Total revenue from operations rose 34 per cent to Rs […]