News - Shopkeepers in Indian state to stop selling cigarettes

Daily Times
15 Aprir 2007
Pakistan

News - Shopkeepers in Indian state to stop selling cigarettes.

[ Kerala's traders union has taken a decision that from April 16 onwards, no shops will sell cigarettes in the state but for how long this decision will be continue...]

THIRUVANANTHAPURAM: A tax row between cigarette companies and vendors in southern India may force smokers to go cold turkey with shopkeepers planning to halt cigarette sales from Monday.

Shopkeepers want cigarette manufacturers to absorb a 12.5 percent value-added-tax imposed by the Communist-led government in the southern state of Kerala from April 1. But the companies have refused to do so.

“From April 16 onwards, no shops will sell cigarettes in the state. We have taken the decision to register our protest,” said T. Naseeruddin, head of the United Business and Traders Association, representing shops in the state of around 30 million people.A packet of 10 cigarettes of popular brand Wills sells for 34 rupees (80 cents) here.

The head of the state traders association said profit margins will drop drastically if the vendors bear the costs of the new tax, which will leave them only a 10-paise profit on each pack of cigarettes sold, he said. “The majority of the shopkeepers are poor and if the profit margin is very low, why should we sell it?” asked Naseerudin.

The decision, to take effect from Monday, has already resulted in the shortage of popular brands with smokers stockpiling their favourite cigarettes. “I have stocked my brand for 10 days. I don’t think that the traders will continue their protest indefinitely,” said Thomas John. afp

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