India has raised taxes on cigarettes and tobacco products, hiking the basic tax rate from 28 percent to 40 percent starting this month.
Tobacco producers and other people in the industry are worried that this will lead to job losses, increased smuggling or other illegal trades including counterfeit products.
Last year, the government cut taxes to stimulate domestic consumption amid higher US tariffs on Indian goods. The tobacco tax hike was meant to make up losses from other taxes.
The move may raise the price of a pack of cigarettes by 55 rupees, or about 60 cents, maximum.
A man who owns a cigarette shop said that impact of the tax increase is going to be huge. "Sales may drop 100 percent within two to three months," he added.
There are said to be about 250 million smokers in India.

Okay, here are three four-choice quizzes based on the provided article, strictly adhering to the requested format.

Quiz 1:
What is the new basic tax rate on cigarettes and tobacco products in India?
A. 20 percent
B. 40 percent
C. 38 percent
D. 50 percent

Quiz 2:
What was the government’s reason for cutting taxes last year?
A. To reduce the price of cigarettes.
B. To combat illegal trades.
C. To stimulate domestic consumption amid higher US tariffs.
D. To increase revenue from tobacco sales.

Quiz 3:
Approximately how many smokers are estimated to be in India?
A. 250 million
B. 100 million
C. 500 million
D. 150 million

[Answer block]
Answers:
Quiz 1: B
Quiz 2: C
Quiz 3: A