Tobacco Excise Duty Hike: Cigarettes to Get Costlier by Up to 20%

The Indian government has imposed a new excise duty on tobacco, set to increase cigarette prices by up to 20% from February. The move has sparked concerns of a decline in sales volume and a shift towards illicit cigarettes. The Tobacco Institute of India warns of immense hardship for farmers, MSMEs, and retailers. Shares of cigarette manufacturers, such as ITC Ltd and Godfrey Phillips India, have crashed.