Tobacco Elasticites in India
Tobacco Elasticities in India
The taxes imposed varies depending upon the type of product. In the market there are different kinds of cigarettes which are of different lengths and different quality. According to the table 3.5 ITC deals with 5 different kinds of cigarettes which have different kind of taxations and the fluctuations in price also varies according to market powers.
As the table 3.1 shows the increase in the excise duty which might surely affect the price of the product. If we consider Unfiltered cigarettes of size < 60 mm there is a increase of 411 % during the time period of 2007 – 09, and if we consider the cigarettes of length 60 – 70 mm in the same given period, there is an increase of 154%.
In case of filtered cigarettes of different lengths of greater than or equal to 70 mm to less than 85 mm and cigarettes of tobacco substitutes, the excise duties are constantly increased by 5% over the couple of years in the product tiers.
In case of bidis other than paper rolls there is a decrease in the taxation by 7.6%, also in all other bidis which are machine made there is a decline of 6.25%.
If we take in consideration gutka tobacco and other chewing tobaccos in the span of 3 years the taxation is constant. While checking the change in percentage it is clearly seen that only in the case of bidi there is a deduction or relief in the taxation provided by the government, because many small scale industries make bidis and give employment to more people.
According to table 3.5 different kind of cigarettes have different kind of ups and downs. In cigarettes like India Kings and Gold Flake which are 75-85 mm had got increased from the time period 2001 to 2007. If we consider Navy cut a cigarette of 70-75 mm size has also seen a major fall in 2007 after a uniform hike from 2001 to 2006. Less than 70 mm cigarettes like Gold Flake small and Wills flake have different aspects of rise and fall respectively. Panama the oldest cigarette has got the
The taxes imposed varies depending upon the type of product. In the market there are different kinds of cigarettes which are of different lengths and different quality. According to the table 3.5 ITC deals with 5 different kinds of cigarettes which have different kind of taxations and the fluctuations in price also varies according to market powers.
As the table 3.1 shows the increase in the excise duty which might surely affect the price of the product. If we consider Unfiltered cigarettes of size < 60 mm there is a increase of 411 % during the time period of 2007 – 09, and if we consider the cigarettes of length 60 – 70 mm in the same given period, there is an increase of 154%.
In case of filtered cigarettes of different lengths of greater than or equal to 70 mm to less than 85 mm and cigarettes of tobacco substitutes, the excise duties are constantly increased by 5% over the couple of years in the product tiers.
In case of bidis other than paper rolls there is a decrease in the taxation by 7.6%, also in all other bidis which are machine made there is a decline of 6.25%.
If we take in consideration gutka tobacco and other chewing tobaccos in the span of 3 years the taxation is constant. While checking the change in percentage it is clearly seen that only in the case of bidi there is a deduction or relief in the taxation provided by the government, because many small scale industries make bidis and give employment to more people.
According to table 3.5 different kind of cigarettes have different kind of ups and downs. In cigarettes like India Kings and Gold Flake which are 75-85 mm had got increased from the time period 2001 to 2007. If we consider Navy cut a cigarette of 70-75 mm size has also seen a major fall in 2007 after a uniform hike from 2001 to 2006. Less than 70 mm cigarettes like Gold Flake small and Wills flake have different aspects of rise and fall respectively. Panama the oldest cigarette has got the