How India’s tax system helps heavily taxed cigarettes flourish

In March 2015 – in response to a drop in sales as taxes more than doubled over four years – India’s leading cigarette company ITC Ltd. shortened its discount Bristol-brand cigarettes by 5 mm. That allowed Bristol cigarettes to make use of India’s complicated six-tier cigarette-tax system and fit into the lowest tax bracket. So, a pack of Bristol costs the same as before.