Tobacco.org

Mixed response to rise in tax on cigarettes 

As cigarette makers grapple with the increased excise on non-filter cigarettes, they fear a section of the consumers may migrate to cheaper alternatives.

"With the new excise, no manufacturer can produce a cigarette at the Rs 5-price point. So, consumers of non-filter cigarettes will be forced to migrate to cheaper tobacco products such as beedis, gutka and khaini, which are far more toxic," says Nita Kapoor, executive vice-president, marketing and corporate affairs, Godfrey Phillips India, which makes brands such as Four Square, Red & White and Jaisalmer.

Industry observers do not see an increase in the conversion rate of non-filter consumers to the filter version as most of them are price-sensitive.

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