From the above article, hope this is indeed true.
Stability in taxes and stringent action by the government on illicit and smuggled cigarettes helped expand the size of the duty-paid cigarette market. There was no steep increase in taxes on cigarettes since July 2017. The government increased taxes in the latest budget, but the net impact of it is less than 1%.
ITC Ltd – which accounts for three out of every four cigarettes sold legally and is a proxy for the category – said in February that the stability in taxes on cigarettes, backed by deterrent actions by enforcement agencies, continued to enable volume recovery for the legal cigarette industry from illicit trade. This has led to higher demand for Indian tobacco and bolstering revenue to the exchequer from the sector, the company had said.
I wish this is permanent and not a temporary respite, as they are more or less the bread and butter of the company, which no one has any complaints about, unlike the FMCG vertical.
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