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Punitive taxation, extreme tobacco control regulations fuel growth in illegal cigarette trade in India
Excise duty on legal cigarette industry has doubled in the last four years and has impacted the legal industry as well as provided a huge arbitrage opportunity to illegal operatorsThe combined effect of high and discriminatory central and state level taxation has impacted the legal cigarette industry, sub-optimised government’s revenue collection and provided a huge fillip to the illegal cigarette trade in the country.
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