In India, debates over misleading tobacco advertising are taking place amid a review of tobacco product taxes.

Several members of the upper house of Parliament, the Rajya Sabha, called on the Indian government to put an end to what they considered misleading advertising for tobacco, alcohol, and related products during a debate on the Excise Duty Amendment Bill 2025, which was introduced earlier in the day in the upper house.[1]. These interventions were prompted by the WHO's estimate of 1.35 million annual deaths in India from cancers and various diseases linked to the consumption of these products. Parliamentarians specifically denounced the practice of indirect advertising, in which tobacco or alcohol brands are promoted under the guise of other products, such as soft drinks or bottled water.

This debate comes amidst a bill that is modifying tobacco taxes.

These discussions took place within the context of the bill amending excise duties, which was approved by the Indian Parliament. The bill was passed by the Rajya Sabha (upper house) the day after its vote by the Lok Sabha (lower house). The new tax system, reforming the one in place since 1944, aims to replace the special surcharge added to VAT on tobacco products with significantly higher national excise duties, as part of an overhaul of India's indirect tax system.

Since the introduction of VAT in 2017, tobacco products have been subject to a VAT rate of 28%, plus a special surcharge to compensate for the tax losses associated with the transition to VAT. At the same time, national excise duties on tobacco were significantly reduced to allow for the application of this special surcharge without unduly increasing the overall tax burden. With this combination (VAT and surcharge), the taxation of tobacco products remained higher than that of other consumer goods, while still complying with the 2017 tax reform.

The text adopted in December 2025 significantly modifies the tobacco taxation system by abolishing the special surtax on tobacco products. In its place, the bill reinstates and strengthens national excise duties, which vary depending on the product: an excise rate of 60 to 70 % on unmanufactured tobacco, 25 % or 5,000 rupees (€47) per 1,000 sticks on cigars and cigarillos, whichever is higher, from 2,700 rupees (€25) to 11,000 rupees (€105) for 1,000 cigarettes depending on length and filter, and 100 rupees (€1) per kg for chewing tobacco.

While this revision results in significant tax increases for many tobacco products, these increases are nonetheless differentiated and risk creating a shift in consumption towards the cheapest products. Best practices involve harmonized taxation, adjusted on the most heavily taxed product, to maximize the reduction in consumption.

Health and tax concerns support this tax increase

Thus, several parliamentarians support stricter taxation to discourage the initiation of nicotine products and encourage quitting. Several elected officials cited the increase in tobacco consumption among Indians regardless of gender or age. As a corollary, they highlighted the rise in cardiovascular and pulmonary diseases, as well as cancers. National estimates indicate 2,500 deaths per day caused by smoking, with a projected increase in tobacco-related cancers of 40% between 2015 and 2025.

Other parliamentarians highlight the additional revenue for the State, thereby reducing the social cost of tobacco: costs of treatments and care, hospitalizations, losses in productivity…

While supporting the bill revising the tax system, particularly on tobacco products, Mr. Thambidurai, of the AIADMK party, stressed the need for state governments to receive their fair share of the revenue, describing the bill as "« timely and necessary reform aimed at preserving public health »"and to prevent harmful products from becoming cheaper.".

Parliamentarians want to fight against illegal tobacco advertising

BJP MP Sanjay Seth criticized the disguised advertising practices in this sector[2] and beyond, in the area of non-communicable diseases for which tobacco and alcohol are major risk factors:« Whether it's for gutkha or alcohol, we see that the advertisements are disguised as soda or water bottles. However, advertising for these harmful products (tobacco, alcohol) is prohibited by the government. These advertisements are designed to negatively influence consumers. Our government must immediately put an end to these practices. ".

He also suggested that a portion of the revenue generated by the change in excise duties be devoted to cancer research and public awareness campaigns.

BSP MP Ramji, for his part, stressed the need to eliminate misleading advertisements, particularly those presenting gutkha (a mixture of snuff) as pan masala (a mixture of spice seeds combined with small sugar balls).[3].

He also urged a total ban on the use of celebrities, including film actors, in these advertisements and insisted on the need to regulate the sale of gutkha and cigarettes through a compulsory licensing system, similar to that in place for alcoholic beverages.

However, illegal promotion is not limited to tobacco products. In July 2025, a group of doctors supported by the organization Mothers Against Vaping The group had also raised concerns about the extent of illegal advertising for electronic cigarettes, which are prohibited, including both their promotion and sale. The group called for the enforcement of the penalties stipulated in the legislation, which provides for fines of up to 5 million rupees (approximately €50,000).

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[1]Social Samosa, Rajya Sabha members demand crackdown on misleading tobacco, liquor ads, Published on December 5, 2025, accessed on December 8, 2025

[2]Adgully Bureau, Rajya Sabha members urge immediate ban on 'Misleading' tobacco advertisements, Published on December 8, 2025, accessed the same day

[3]Storyboard18, Rajya Sabha members demand ban on 'misleading' tobacco and liquor advertisements, Published on December 5, 2025, accessed on December 8, 2025

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