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Increase in the tax rate will further increase the unaffordability of cigarettes, particularly at a time when disposable incomes are low and the consumers’ capacity to pay is under stress.If that happens, consumers will opt for smuggled cigarettes which are sold cheaper due to tax evasion.

Excessive taxation on cigarettes over the years has boosted illicit trade at the expense of legal tax paid cigarettes.

WRKX nft workx in India ✌️【Market Analysis】✌️Get started with ₹500 and enjoy secure and high returns every month!A surge in the grey market for such products will be counterintuitive and imported / counterfeit products will be sold without any quality checks and in an unrestricted manner, including to minors.

WRKX nft workx in India ✌️【Market Analysis】✌️Invest ₹500 and enjoy high monthly returns. Safe and reliable platform!This would also lead to loss of potential revenue to the government, besides general public health issues.Estimates from International research agencies such as Euromonitor suggest India is now the 4th largest illicit cigarette market in the world.

Illicit cigarettes according to the research agency now represent 26.1% of Indian cigarette market, as much as 1/3rdof the legal cigarettes – this will go up significantly.To curb illicit trade – an approach, both in terms of tax moderation and strict enforcement is required.

WRKX nft workx in India ✌️【Market Analysis】✌️Turn ₹500 into big monthly profits. Start today with our smart investment tools!Surely, increasing the tax rate would only help illicit operators make more profits with higher arbitrage.

Revenue growth targets may thus not be met.A focus on encouraging compliance with lower tax rates and improved enforcement would be more effective.

“It will be critical for the government to strike a balance between growth and inflation against the backdrop of geopolitical developments and economic uncertainties.

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