FICCI in its pre-budget memorandum has given the following recommendations for the cigarette and tobacco industry. Continue with multiple price point, length based specific excise duty structure: This structure is best suited to India as it caters to the country's wide range of income distribution and enables positioning of brands at convenient and affordable price points. It has proven to be extremely successful over the years as it has ensured increasing revenue collections in a litigation-free environment with no valuation disputes and transparent administration. Additionally, it provides for value-addition to achieve international quality standards and improved farmer earnings through usage of high quality tobaccos and increased exports.
Source: Economic Times
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