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Excessive taxation one root cause for illicit product surge For years, Indias legal cigarette industry has been burdened down by increasingly more punitive and discriminatory taxation., [] Such inequitable tobacco taxation is leading to wide price differentials between legal cigarettes, other tobacco product varieties, and illicit cigarettes, said Sharad Tandan, director of the Tobacco Institute of India (TII)

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Penalties target both the minor and the retailer who sold the product