Up in smoke: Illegal cigarette trade jumped 10 times during pandemic
Corroborating concerns in various trade circles, the government has admitted in the Lok Sabha that the illegal sale of cigarettes in India during the pandemic financial year 2020-21 shot up to 10 times than the previous five years.
The fact was reflected in the data presented in the Lok Sabha on Wednesday (March 17) by the Department for Promotion of Industry and Internal Trade (DPIIT).
The industry body FICCI in July last year in its report submitted by its arm, the Committee Against Smuggling and Counterfeiting Activities Destroying the Economy (CASCADE) had asked policymakers to treat illegal trade as a national threat. It said various firms were spotted making illegal cigarettes and tobacco products and selling them openly in the market even during the strict nationwide lockdown.
Also read: Lockdown: Tobacco farmers seek rescue package as ₹4,400 cr crop unsold
The Central Board of Indirect taxes and Customs (CBIC) said that till February 21 of FY-21, ₹ 1,772 crore worth cigarettes were seized. This is almost 10 times higher than the seizure in FY-20 worth ₹188 crore. In FY-16 and FY-18, the government seized cigarettes worth ₹ 2,396 crore and 1,893 crore respectively. Smuggling across borders and domestic tax evasion contributed to the seizures, it said.
Minister of State in the Ministry of Commerce and Industry Som Prakash said according to the CBIC, the World Health Organization estimates illicit cigarette in India at 6% of the markets in 2016-17.
Also read: Maha: Banned tobacco products worth lakhs seized in Aurangabad
“Strict action is taken in accordance with the Customs Act, 1962 and other existing provisions of laws, as applicable. The Ministry of Health and Family Welfare has acceded to the protocol to eliminate illicit trade in tobacco products as adopted under Article 15 of the World Health Organization Framework Convention on Tobacco Control (WHO FCTC), to which India is a party, to develop the tracking and tracing mechanism,” Som Prakash said.
