Is shrinking market in the US and Europe for tobacco products resulting in an increase in smuggling of cigarettes into India?
The Federation of All India Farmer Associations (FAIFA) has alleged that some multi-national companies, which are not registered in India, are encouraging smuggling of cigarettes into India as they face a shrinking market elsewhere. They are also causing a loss to exchequer by avoiding excise duties that they should have remitted.
Appealing to the Centre to keep tabs on such illegal activities, FAIFA General Secretary Murali Babu said that the government was losing heavily in the unpaid duties and taxes and causing loss to tobacco farmers in the country.
“About 25 billion sticks of cigarettes are being smuggled into the country,every year. This means farmers have lost a demand for 16 million kg a year. This has resulted in drop in earnings of FCV tobacco farmers which have shrunk cumulatively by more than ₹3,650 crore in the last three years,” he said.