INDIAN CIGARETTE TAXATION FORCES CONSUMERS TO CHOOSE ALTERNATIVE TOBACCO PRODUCTS

BY RAGHAVENDRA VERMA

THE INDIAN cigarette industry is losing sales to manufacturers of other tobacco products due to a disproportionately high rate of taxation on cigarettes, says ITC, the Calcutta-based company that controls 80% of the country's cigarette market.

"Unlike the rest of the world, the consumption of cigarettes in India is less than 14% of the total tobacco consumption and 86% is constituted by bidis (tobacco rolled in temburini leaf) and chewing tobacco," a company spokesperson told World Tobacco.

The ...


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