Tobacco Industry

Duty hike on tobacco products will hurt farmers, fuel smuggling: FAIFA

The Federation of All India Farmer Associations (FAIFA) on Friday said the government's move to levy additional excise duty on tobacco products will hurt farmers' income and exacerbate smuggling in a market already grappling with illicit trade. The finance ministry last month notified excise duties of Rs 2,050-8,500 per 1,000 cigarette sticks depending on length, effective February 1, under the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules, 2026. FAIFA, representing growers across Andhra Pradesh, Telangana, Karnataka and Gujarat, said the duty increase contradicts the government's assurances of revenue-neutral tax reform. "We are shocked to see that the promise has not been kept, and instead a sharp increase in taxes has been notified, at the cost of farmers' livelihoods," FAIFA President Murali Babu said in a statement. The farmers' body warned that higher retail prices will reduce legal cigarette consumpti

Explained: How tax regime on tobacco has changed in India since 2014

As the Centre scraps the GST compensation cess, here is how India's tobacco tax structure has evolved over the past decade

Tobacco excise rules: Makers to install CCTV, store footage from Feb 1

Manufacturers of chewing tobacco, gutkha and similar products will have to install a functional CCTV system from February 1, covering all packing machines and preserve the footage for at least 24 months, according to a government notification. Such manufacturers will also have to disclose to excise authorities the number of machines and their capacities, and can also claim abatement in excise duty in case a machine is non-functional for a minimum of 15 consecutive days, according to the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules notified by the Finance Ministry. The Rules will apply to manufacturers who pack such goods in pouches. "Those manufacturing in other forms (such as tins) have to pay the applicable duty on assessable value," an FAQ released by the Ministry said. The Ministry, on December 31, 2025, notified the additional excise duties that would be levied on chewing tobacco and related products,

Cigarettes, biris, pan masala, tobacco products to get costlier from Feb 1

The government on Wednesday notified February 1 as the date from which additional excise duty will be levied on tobacco products, and a new cess on pan masala. The new levies on tobacco and pan masala will be over and above the GST rate, and will replace the compensation cess which is currently being levied on such sin goods. From February 1, pan masala, cigarettes, tobacco and similar products will attract a GST rate of 40 per cent, while biris will attract 18 per cent Goods and Services Tax (GST), according to a government notification. On top of this, a Health and National Security Cess will be levied on pan masala, while tobacco and related products will attract additional excise duty. The Finance Ministry on Wednesday also notified the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules, 2026. Parliament had in December approved two Bills allowing levy of the new Health and National Security Cess on pan masa

British American Tobacco plans to offload stake in India's ITC Hotels

Dec 4 (Reuters) - British American Tobacco is looking to offload its stake in India's ITC Hotels, it said on Thursday, through an accelerated bookbuild process

Centre may introduce Bill in winter session to replace tobacco GST cess

New levy could follow full repayment of GST compensation loans, keeping overall tax incidence on tobacco products high

GST 2.0: ITC, VST Industries shares fall as Govt eyes extra tobacco tax

Tobacco stocks like ITC, VST and Sinnar Bidi fell up to 5 per cent today after govt signaled an extra GST cess on cigarettes and bidis, raising margin risks. Analysts suggest stock strategy ahead

GST authorities uncover Rs 104 cr tax evasion in illicit tobacco trade

GST authorities have detected 61 cases of illicit tobacco products, including cigarettes and pan masala, involving tax amounting to Rs 104.38 crore in the first quarter of the current financial year, as per government data. The Directorate General of Goods and Services Tax Intelligence (DGGI) and other authorities have detected these cases during the April-June period, it said. Besides, it said, customs field formations and Directorate of Revenue Intelligence (DRI) have seized around 3.93 crore sticks of cigarettes in the current financial year up to June 2025. According to the DRI data, seizures of smuggled cigarettes have witnessed a sharp spike between 2019-20 and 2023-24, rising by over 107 per cent in volume and more than 110 per cent in value. High-margin goods like gold, tobacco, and alcohol are heavily taxed, creating strong incentives for smuggling and tax evasion. Their high value and steady demand make them prime targets for illicit trade, often fuelled by arbitrage and

No Tobacco Day: Raising awareness about tobacco industry's deceptions

India ranks second in global tobacco-related deaths, with nearly 1.4 million fatalities annually

World No Tobacco Day: Theme, significance, history & facts you need to know

This year's theme-'Bright products. Dark intentions'-exposes how tobacco firms use flavours, design, and digital marketing to lure young users

16 member countries urge to include vapes in EU's tobacco tax law

Initiative, led by Netherlands, has support of Croatia, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Latvia, Slovakia, Spain, Belgium, Bulgaria, Ireland, Slovenia and Portugal

DPIIT working on proposal to further tighten FDI rules in tobacco sector

The Commerce and Industry Ministry is working on a proposal to further tighten the foreign direct investment norms in the tobacco sector to check promotional activities and curb smuggling in the segment as firms are trying to circumvent norms, an official said. At present, foreign direct investment (FDI) is prohibited in the manufacturing of cigars, cheroots, cigarillos and cigarettes of tobacco or its substitutes. However, it is permitted in technology collaboration in any form, including licensing for franchise, trademark, brand name and management contracts in the tobacco sector. "FDI in tobacco is prohibited, and there is a need to control the sectors' promotional activities also. By doing promotion of those products, some companies try to create a system where smuggling increases," the official said. The Department for Promotion of Industry and Internal Trade (DPIIT) has circulated a draft note seeking the views of different ministries on the issue. The official added that ..

Govt allows sale of excess tobacco produced by registered growers in Andhra

The government on Wednesday said it has allowed sale of excess FCV tobacco produced by registered growers on auction platforms in Andhra Pradesh for the crop season 2023-24. The commerce ministry has also waived the additional service charges considering the crop damage in an area of 15,028.09 hectares across all soil regions in Andhra Pradesh. It said that the decision will benefit farmers of the state to recover the loss due to cyclonic rains in view of zero penalty on sale of the excess Flue Cured Virginia (FCV)) tobacco produced by registered growers on the auction platforms in Andhra Pradesh for 2023-24 crop season. This consideration will handhold the farmers to overcome their financial plight inflicted due to natural calamity and would greatly help growers continue their livelihood, it added. "Union Minister of Commerce and Industry Piyush Goyal has approved the sale of the excess Flue Cured Virginia (FCV) tobacco produced by registered growers on the auction platforms in ..

ITC hits Rs 500: Jefferies says 'Buy' on no tobacco tax rejig in Budget

ITC share price target: ITC stock hits Rs 500-mark for the first time. Jefferies upgrades stock to 'Buy', Macquarie initiates with 'Outperform'

Tobacco prices to rise in Andhra after crop failure in Brazil, Indonesia

Prices range between Rs 280 and Rs 290 per kg and are predicted to surpass Rs 300 per kg in Andhra Pradesh market

GST authorities: Penalty for Tobacco cos not registering packing machines

Manufacturers of pan masala, gutka and similar tobacco products will have to pay a penalty of up to Rs 1 lakh, if they fail to register their packing machinery with the GST authorities with effect from April 1. The move is intended to curb revenue leakage in the tobacco manufacturing sector. The Finance Bill, 2024, introduced amendments to the Central GST Act, where a penalty of Rs 1 lakh would be levied for every machine not registered. Further, such non-compliant machinery would face the risk of seizure and confiscation in certain cases. Based on the recommendation of the GST Council, the tax authorities had last year notified a special procedure for registration of machines by tobacco manufacturers. The details of existing packing machines, newly-installed machines, along with the packing capacity of these machines, have to be furnished in Form GST SRM-I. However, there was no penalty notified for the same. Revenue Secretary Sanjay Malhotra said the GST Council in an earlier .

ITC Ltd director David Robert Simpson resigns, effective January 30

ITC Ltd on Tuesday said its Non-Executive Director David Robert Simpson has resigned due to personal reasons. His resignation will be effective from January 30, the Kolkata-headquartered company said in a regulatory filing. Simpson was on ITC board as a representative of Tobacco Manufacturers (India) Ltd, a subsidiary of British American Tobacco plc. "David Robert Simpson, Non-Executive Director, has tendered his resignation from the Board of Directors of the company with effect from 30th January, 2024, due to personal reasons," ITC said. He was appointed on ITC board as a Non-Executive Director with effect from January 27, 2017. As of September 2023, Tobacco Manufacturers (India) held 23.88 per cent stake in ITC.

British American Tobacco writes down US cigarette brands, stocks fall

BAT's move comes as ever-stricter regulation and growing awareness of health risks squeeze tobacco companies' traditional business, driving declines in cigarette volumes in some markets

DS Group considering investment of Rs 200 cr to expand luxury portfolio

The DS group also has brands like Swiss luxury chocolate Laderach, childrenswear store Les Petis, and premium grocery and retail store Le Marche

Not tobacco ban, new therapies key to combating lung cancer: Nobel laureate

The key to combating lung cancer is the development of novel immunotherapies and diagnostic techniques and not a complete ban on tobacco that is impossible to enforce, says American Nobel laureate Harold Varmus. Varmus won the 1989 Nobel Prize in Medicine - along with American immunologist Michael Bishop -- for the discovery of gene mutations that can lead to the transformation of a normal cell into a tumour cell and result in cancer. Dwelling at length on lung cancer, the leading cause of death due to cancer globally as well as in India, Varmus said, "Trying to prohibit tobacco or to ban tobacco entirely is a mistake because we know that you can't enforce complete prohibition. That is the kind of thing that leads to various forms of crime and it doesn't work." "I don't think bans work very well. But I do think that not just in India and every country, including the US, where we still have 18 per cent of our population smoking, we have people using nicotine vapes instead of ...