The sale of pan masala and tobacco has gone up ‘several fold’ in the Indian state of Uttar Pradesh since the manufacturing and sale of gutkha was banned in the state from April 1, according to a story by Brajendra K. Parashar for the Hindustan Times.
The reason for this isn’t hard to fathom. Gutkha is basically a mixture of pan masala and tobacco; so consumers are simply buying these two ingredients and mixing them themselves.
And the evidence is plain to see. Government tax revenue from sales of pan masala rose from Rs45 million during the first two months of the 2012-13 financial year (April and May 2012) to Rs140 million during April and May 2013. At the same time, the revenue from sales of tobacco rose from Rs15 million to Rs40 million.
Meanwhile, gutkha manufacturers whose plants have been closed since April are expected to seek fresh registrations with the Central Excise Department for the manufacture of tobacco and pan masala – separately, of course.
Category: Breaking News