With a view to address public health issues, government is considering to bring manufacture of 'other tobacco products' like khaini, tobacco blended pan masala, hookah or gooduku tobacco, zarda and bidis under the ambit of compulsory licensing.
A proposal for bringing manufacture of "other tobacco products" under the ambit of compulsory licensing is under consideration with a view to address public health issues, Commerce & Industry Minister Nirmala Sitharaman said in the Rajya Sabha.
These tobacco products include khaini, tobacco blended pan masala, hookah or gooduku tobacco, zarda, bidis and other chewable/eatable tobacco related items, she added.
The Minister said initial stakeholder consultations were held with Central Board of Excise and Customs, NITI Aayog, Department of Commerce, Tobacco Board, Ministry of Labour & Employment, Ministry of Health and Family Welfare and office of Development Commissioner, Micro Small & Medium Enterprises.
Comments on the proposal have been sought from concerned central ministries/departments, state governments and union territories, Sitharaman said.
"In addition, information of existing production capacity in respect of these items has also been sought for from the State Governments and Union Territories," the Minister said.
Domestic tobacco products makers including ITC have been been advocating compulsory licensing of all cigarette-making units irrespective of size, and rise in customs duty on imported cigarettes to rates fixed by the World Trade Organisation.
In June, ITC said high incidence of taxation and "a discriminatory regulatory regime" on cigarettes in India have led to a shift in tobacco consumption to lightly taxed or tax-evaded tobacco products, including bidi, khaini, chewing tobacco, gutkha and illegal cigarettes, which constitute over 89 per cent of India's tobacco consumption.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!