Traders in Kerala on Thursday decided not to sell cigarettes in the state beginning 16 April as tobacco-manufacturing companies were 'not prepared' to pay the value-added tax for the products.

A decision to this effect was taken in Kozhikode at a meeting of the Vyapari Vyavasayi Ekopana Samithi, the leading traders organisationbody  in Kerala, which stated that “companies, manufacturing tobacco products, are not prepared to bear the 12.5 per cent VAT,” levied on them.
"The government in its order of 1 April has said that the companies should also include the tax before fixing the price of the products and we also welcomed it," Samithi state president T Naseeruddin said.
However, since the companies were not adhering to the decision, the traders would be put to severe hardship as they would not benefit from selling cigarettes at the current price, he said. Thus thee  Samithi has, therefore,  decided to refusenot to selling cigarettes in the state from 16 April, he added.