New Delhi, Jan. 1 -- The Tobacco Institute of India (TII) has expressed strong concern over the sharp increase in excise duty on cigarettes announced on Wednesday (December 31), saying the move could severely hurt farmers, small businesses and legitimate industry while significantly boosting illicit trade in tobacco products.
In a communique released on Thursday here, TII said it was "shocked and surprised" by what it described as an unprecedented duty hike, especially in light of repeated government assurances in the past that the transition in tax structures would be broadly revenue neutral.
According to the industry body, the scale of the increase goes far beyond expectations and could have far-reaching economic consequences.
TII warn...