High Taxes On Cigarette May Fuel Illicit Trade, Hurt Tax Collection

The hike in prices of cigarettes following the implementation of additional excise duty beginning this month could lead to a surge in illicit cigarette trade and put pressure on tax collection, a report



said.

Impact of high tax rates on the entire cigarette value chain, and on the economy, will be significant and difficult to alter later, a report titled 'new tax regime on cigarettes and its impact' said.