According to ITC, the vacuum created by the exit of the popular low priced micros and plain nonfilter cigarettes (in the wake of the heavy imposition of excise duties last year) has been occupied by duty-evaded illegal regular size filter cigarettes which are sold at Re1 per stick.
Mr. Kurush Grant Divisional Chief Executive, ITC said,
these low priced tax-evaded illegal cigarettes account for about 12-13% of cigarette industry today (~5% in 1HCY08).
Industry has represented to government to consider the introduction of a new tax slab that would enable them to offer the consumer tax-paid cigarettes at this price point. This representation, if accepted and implemented, augurs well for significant uptick in cigarette industry volume growth, unfortunately a bane on Indian Health.