New Delhi: Tobacco Institute of India said that india may additionally become a preferred destination for ” smuggled cigarettes” as the increase in National Calamity Contingent Duty (nccd) will incentivise illegal cigarette trade operators.
“The hike in NCCD announced in the budget 2020-21 and the resulting escalation in cigarette taxation leading to higher tax arbitrage will serve as a massive incentive to illegal cigarette trade operators, who target India as a favored destination for smuggled cigarettes,” it stated in a statement. It pointed out that illegal cigarettes have grown consistently within the country and now account for one-fourth of the Indian cigarette market.
“in the current financial environment the proposed hike introduced in the union budget on NCCD will aggravate the pressure on the illegal cigarette industry, encourage illegal cigarette trade and adversely effect tobacco farmer earnings whose livelihood is intrinsically linked with the legal cigarette value-chain,” the tobacco institute of India said.
