The Economic Times News

Tax hike raises risk of smuggling of tobacco products and revenue loss for govt: Experts

Experts warn that a significant tax hike on cigarettes, effective February 1, could fuel illicit trade and lead to substantial tax revenue losses. The new excise duty structure, combined with existing GST, represents a 60-70% increase, potentially driving consumers towards smuggled products. This move risks amplifying India's already substantial illicit tobacco market.