Cigarette sector poised for 5% growth on stable VAT

In the past three years, no state except Rajasthan has toyed with the VAT rate in the tobacco sector

Thanks to stable tax rates on the cigarette industry across the states in the country and the Centre's recent seemingly soft stance on the sector, the cigarette industry in India is poised for a five per cent volume growth in the coming fiscal year.

Cigarette market in India
	Volume (mn kg)	%age share in industry
Total tobacco consumption	562	100
Total legal cigarette market	62	11
Total non-duty paid cigarette market