A report from the Ministry of Finance reveals a significant decline of 20.9% in cigarette sales during the first 9 months of the year 2023. Comparing the data to the same period in 2022, where 2,203.9 million cigarettes were sold, the sales in 2023 dropped to approximately 1,743 million.
Despite the decline in sales, the report indicates a contrasting trend in excise tax revenue on cigarettes. The excise tax revenue has seen an increase of 8.9%, reaching 90 billion rupees in the first 9 months of 2023. In the same period of 2022, the excise tax revenue on cigarettes was 82.6 billion rupees.
The report attributes the rise in excise tax revenue to the implementation of a 20% increase in excise duty for cigarettes from July 1, 2023. The Ministry of Finance expects this adjustment to be the primary factor contributing to the boost in income from excise taxes.
