Cigarette tax hike: Experts warn of surge in illicit trade; fear major revenue losses

📅 Published: January 4, 2026 | 📂 Category: Top Stories

Experts warn that a significant tax hike on cigarettes, coupled with a new excise duty structure, could fuel illicit trade and lead to substantial revenue losses for the government. This unexpected increase, raising overall taxes by 60-70%, risks pushing consumers towards smuggled products, as India already faces a substantial illicit tobacco market.

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