The Economics of Tobacco and Tobacco Taxation in India

India is unique in the range of tobacco products that are available at different price points, targeted at populations with substantial differences in
socioeconomic and demographic profiles. Tobacco is consumed in a variety of forms, from smoking tobacco products like bidis* and cigarettes to several types of
chewing tobacco. There are considerable differences in the taxes imposed on each of these product categories. Tobacco taxes are low overall in India, and are
especially low for the products consumed most widely.

This report reviews current research on the economics of tobacco taxation in India and makes recommendations for tobacco tax policy.


March 2010

  • Rijo M John
  • R. Kavita Rao
  • M. Govinda Rao
  • James Moore
  • RS Deshpande
  • Jhumur Sengupta
  • Sakthivel Selvaraj
  • Frank J. Chaloupka
  • Prabhat Jha