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India: The Tax Treatment of Bidis

Summary

Bidis are under-taxed compared to cigarettes, taking into account the health risks of each, and therefore, on health grounds, a strong case can be made for increasing the excise burden on bidis.

Emil M. Sunley, former Assistant Director, Fiscal Affairs Department, International Monetary Fund, 1992-2006
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Download Factsheet: Bidi Tax Summary and Recommendations PDF