Smoking a regular cigarette is without a shadow of a doubt considered to be an act which is worth avoiding. Nonetheless, the addiction to tobacco is so strong that chain smokers simply cannot hope to quit smoking cigarettes so easily and more often than not, they continue to smoke cigarettes, regardless of the adverse health impacts this product has on the health of the smoker as well as the health of the innocent non-smoker. This is apparently one of the main reasons why people from all walks of lives, especially non smokers, prefer the government to take stringent action and stop smokers from smoking regular cigarettes on a rampant basis. Yet, such an act is very difficult to execute and more often than not, people from all walks of lives are left with no other option but to inhale the deadly second hand smoke, much to their displeasure.

While there could be several reasons why the governments of several leading nations as well as several developing nations are unable to put a stop on people smoking tobacco cigarettes in a regular basis, the main reason which is being cited is the revenue which these governments get while allowing smokers to smoke cigarettes regularly. In India alone, it has been confirmed that over 30% of the total population smokes cigarettes. This is a very large number, which is also alarming in nature. Nonetheless, owing to the rising prices of cigarettes, people resort to snorting or chewing tobacco instead. With the high taxes being charged by the government on cigarettes, it has been noticed that people in India prefer chewing tobacco or snorting tobacco, instead of smoking it like most others do.

One of the main reasons why cigarettes in India are being looked on as a painful task for consumption, especially by chain smokers, is because the taxes on tobacco, especially the excise tax, is rather high and almost half the price of the original cigarette is usually spent on such taxes. This in turn hikes the prices of cigarettes and beedes. Nonetheless, the government of India is known to earn 75% of all revenue through the same of tobacco cigarettes and hence, it does not totally stop the consumption of cigarettes. What it does is increase the price of regular cigarettes, so that people from all walks of lives have to pay more money in trying to satisfy their nicotine cravings, thereby permitting the government to earn more and more revenue on cigarette smoking. This is why cigarettes are sold in such large proportions in the Indian subcontinent.

As per a recent report, it has been stated that Godfrey Phillips as well as ITC have been smuggling cigarettes into the Indian subcontinent, thereby managing to evade the huge excise charges, yet managing to make huge amounts of money by selling their brand at the same hiked price. The FY09 is a classic example of a cigarette brand which diminished in size owing to the high excise charges which government authorities levied on the sale as well as manufacturing of filter cigarettes. While the excise hikes are huge and should deter tobacco manufacturers from producing cigarettes in larger numbers, the fact remains that without a shadow of a doubt, these costs are passed on to the consumers. Hence, the price hike does not cause any sort of damage to the cigarette manufacturers.

Tobacco products in India are hiked by as much as 18%, which in turn allows users to try and ensure that they have to somehow manage raising their budgets at each step and ensure that they are able to pay for the exorbitant prices, which have been established by the powerful tobacco lobbyists. The funny part here is that these prices continue to increase at short notices and no one can do anything much to deter that from happening. In India, Godfrey Phillips, ITC as well as VST, have captured the Indian cigarette market and despite the increment in excise duties being levied by the Indian government, these companies have witnessed a drastic increment in their net profits.

Nonetheless, their sales growth has diminished for reasons, which are very transparent. For the Indian government, allowing the sale of cigarettes is a good option as their sales would never dip, under any circumstances. In fact, cigarettes would be bought on a regular basis and people would never be shy of purchasing them, no matter how much extra they need to pay for their cherished cigarette pack. In the year 2011, the sale volume witnessed a growth of 2%, wherein 107.5 cigarette sticks were recorded to have been sold in India.