Cigarette sales may drop due to taxes: ITC

Following incidence of higher tax rates due to imposition of 12.5% VAT on cigarettes, ITC feels sales volume would definitely drop, the extent of which would be ascertained at a later date. An ITC source said: “A 33% rise in taxes is bound to affect volumes. We will have to wait and watch for the actual impact.” He, however, said that the extent of price rise may not be enough to compensate for the loss in volumes.

Courtesy: EconomicTimes
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