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ITC seeks removal of differential treatment to cigarettes
India`s ITC limited on Thursday sought lifting of `differential tax` on cigarettes to halt `progressive migration` to other forms of tobacco consumption.
India's ITC limited on Thursday sought
lifting of 'differential tax' on cigarettes to halt
'progressive migration' to other forms of tobacco consumption.
Continued discriminatory and punitive taxation at the central and state levels over the years have led to progressive migration from cigarettes to other forms of tobacco consumption with the share of cigarettes falling from around 23 per cent in 1971 to below 16 per cent currently, ITC officials said.
“The high taxation amounted to over 80 per cent of the value added in the cigarette industry thereby making it increasingly unaffordable to the Indian tobacco consumer,” he said. “Differential treatment will lead to a significant reduction in the economic contribution from the tobacco sector without reducing consumption of tobacco among the economically disadvantaged sections of our society,” the official said.
“Non-cigarette forms of tobacco consumption, although constituting nearly 84 per cent of tobacco consumption in the country, contribute barely 10 per cent of government revenues from this sector,” he said.
Bureau Report
Continued discriminatory and punitive taxation at the central and state levels over the years have led to progressive migration from cigarettes to other forms of tobacco consumption with the share of cigarettes falling from around 23 per cent in 1971 to below 16 per cent currently, ITC officials said.
“The high taxation amounted to over 80 per cent of the value added in the cigarette industry thereby making it increasingly unaffordable to the Indian tobacco consumer,” he said. “Differential treatment will lead to a significant reduction in the economic contribution from the tobacco sector without reducing consumption of tobacco among the economically disadvantaged sections of our society,” the official said.
“Non-cigarette forms of tobacco consumption, although constituting nearly 84 per cent of tobacco consumption in the country, contribute barely 10 per cent of government revenues from this sector,” he said.
Bureau Report