This year, the minister expects to earn Rs 4,056.86 crore from tobacco-related industry against the actual revenue earned in 1996-97 of Rs 3,098.17 crore. In the last budget, the government had projected Rs 3,658.15 crore which was revised to Rs 3,756.63 crore.

Of this amount, the cigarette industry alone contributed Rs 2,714.79 crore in 1996-97. The revenue projected from this commodity in the last budget was Rs 3,238.45 crore which was revised to Rs 3,326.86 crore. This year the finance ministry expects to earn Rs 3,584.32 crore from the cigarette industry. The other two tobacco industry related commodities are bidis and chewing tobacco. The bidi industry had provided a net revenue of Rs 171.27 crore in 1996-97. The last budget had projected Rs 181.2 crore worth revenue from thisindustry which was revised to Rs 221.75 crore. This year's revenue projection from the bidi industry is pegged at Rs 228.05 crore.

Chewing tobacco including kara masala and kimam had earned the excise department Rs 212.11 crore in 1996-97 and the budget projection last year was Rs 238.5 crore. This was latter revised to Rs 208.02 crore. However, this year the government expects to net Rs 244.49 crore from this industry.

In addition to the basic excise duty, the cigarette industry also pays additional excise duty in lieu of sales tax. In 1996-97 the actual receipt under this head was to the tune of Rs 1,267.97 crore. In the last budget the revenue projection for this head from the industry was Rs 1,523.95 crore which was revised to Rs 1,725.16 crore. This year it is projected to earn Rs 1,955.63 crore.

Similarly, the bidi industry also contributes to this revenue and is projected to earn Rs 78.02 crore this year. In the revised estimate the amount was pegged at Rs 72.1 crore and it was hiked from thebudgetary projection of Rs 54.1 crore. In 1996-97, the actual receipt under this head was Rs 49.43 crore.

The bidi industry also has to pay cess and is expected to shell out Rs 146.18 crore to the government this year. Last year's budget projection of cess on bidi was to the tune of Rs 26.9 crore which was doubled in the revised estimate to Rs 59.5 crore. In 1996-97, the actual revenue under this heading was only Rs 20.75 crore.

The chewing-tobacco industry is expected to pay Rs 73.03 crore towards additional duty in lieu of sales tax. In 1996-97, the industry had paid Rs 48.01 crore and in the revised budget it was expected to pay Rs 59.05 crore against the budgetary projection of Rs 59.65 crore.

This figures also indicate that there has been no major shortfall in excise revenue from the tobacco-related industry.