M A I N   N E W S

Cigarette firms flout excise rules
Aditi Tandon
Tribune News Service

Chandigarh, March 31
With no government checks in operation, cigarette manufacturing companies minted big money for the entire month of March. Violating excise laws with impunity, they sold cigarettes on hiked excise duty rates till yesterday night and made staggering profits running into crores. This they did at the cost of their customers.

How else could cigarette packets manufactured and packaged in April, 2007, flood the market in March (see picture)? The phenomenon of duping the customers has been dominating the market for more than 10 days, with all major cigarette manufacturing firms violating rules by bringing in their April-manufactured brands.

Even though the raised excise duties rates on cigarettes will become effective from April 1, a brand like Gold Flake was already selling in March at Rs 38 against its applicable (March) price of Rs 34. Following suit was Wills Navicut which sold for most part of March at Rs 30. Its price, however, was Rs 27. Similarly, a 10-cigarette Four Square packet, “manufactured and packed” in April (see picture) sold in March at Rs 19, whereas its applicable rate was Rs 17.

Earlier on, when the excise duty on cigarettes and other tobacco products used to be hiked in the Budget, roadside vendors used to make hay. But now even trusted tobacco brands seem to have fallen in line, as they conveniently cheated on the customers by making them pay “yet-to-be applicable” rates. Sources say a further hike in cigarette rates is in the offing.

Meanwhile a roadside vendor found selling cigarettes at higher rates tonight said that he was being forced by the companies to do so. “The companies had flooded the market with cigarettes of April manufacturing. What else could we do, but sell?”

Finance minister P. Chidambaram had announced a hike in excise duties on cigarettes in his budget for 2007-2008 on February 28. However, new rates were to apply only in the new financial year, beginning April 1.