ITC''s Cigarette Sales Likely To Fall

The cigarette sales volumes of diversified conglomerate ITC may come under pressure in the current financial year, owing to the bleak taxation and regulatory scenario for tobacco. The management discussion and analysis paper prepared by the company pointed out that the cigarette industry was in an extremely challenging environment. The combined impact of a 6 per cent rise in excise duty and imposition of 12.5 per cent ad valorem VAT was equivalent to a 33 per cent increase in excise tax incidence on cigarettes.