Tobacco companies on the warpath (fwd)

[Robert Weissman <rob@essential.org>]

Tobacco companies on the warpath
Source: Hindustan Times, Wednesday, 10/20/99
Calcutta, October. 19                                                           
(Tapan Das)

Stung bitterly by the strident campaign both against direct and passive
smoking, three major cigarette manufacturers, namely, ITC, Godfrey Philips
and Vazir Sultan Tobacco Ltd, are believed to be bracing themselves up to
unleash a massive propaganda offensive with the help of eminent expert
findings to refute assertions that passive smoking enhances the risk of
lung cancer.

The move by three manufacturers accounting for 95% of the total industry
production, comes in the wake of plummeting sales following bans on
smoking at public places in Kerala, Delhi as well as sale of cigarettes at
railway stations.

Sale of cigarettes during the period of April to September this year has
dipped by as much as 7 % to 12% in the case of the ITC and VST
respectively as compared to the same period last year in the total terms.

But in the micro segment fall has been much more crippling with as much
20% reductions in the ITC, 23% for VST and 13% for Godfrey Philips,
lamented a leading manufacturer here.

Contesting that ban on cigarette smoking and sells at major retail outlets
rather discriminatory, a top official told The Hindustan Times that only
15% of the total Indian tobacco consumption are accounted for by cigarette
smokers who are already being taxed heavily and contributing 90% of the
Government’s earning from tobacco sector tax revenue and 4% of agri-export
income.

High taxes on cigarettes has brought down the share of cigarettes in the
total tobacco consumption from 23% to 20% in the last five years, steep
prices have kept the sales of smuggled cigarettes increasing and is
thereby depriving the national exchequer an annual revenue of nearly Rs
300 million.