Odisha's Tobacco Windfall: How Tax Revenues Have Skyrocketed

The Odisha government has amassed Rs 6,595.55 crore in tax revenue from tobacco and pan masala sales over 11 years. Despite a 2013 ban on certain products, collections have increased annually, reaching Rs 1,047.82 crore for the first 11 months of 2024-25. Imports come from 16 states.

The Odisha government has reported collecting a vast Rs 6,595.55 crore from taxes levied on tobacco and pan masala sales over an 11-year period.

During a session on Monday, Chief Minister Mohan Charan Majhi disclosed these figures in response to a query from BJP legislator Tankadhar Tripathy. The revenue figures have shown a consistent upward trajectory. While Rs 174.71 crore was collected in 2014-15, the number surged to Rs 1,047.82 crore in the first 11 months of 2024-25.

The chief minister's statement highlighted the rising trend, with annual revenues steadily climbing despite a 2013 state-wide ban on gutka and chewing tobacco products containing nicotine. These banned products are still being imported from 16 different states.