ILLICIT Trade in Tobacco Products : Illegal trade in everyday necessities (FMCG), mobile phones, tobacco products and alcohol has caused tax losses across the country. Let us tell you that due to illegal business in 5 major industries of FMCG, the exchequer has suffered a loss of Rs 58,521 crore in 2019-20. This has been revealed in a report by industry body FICCI.
75 percent FMCG in illegal business
According to a FICCI report, the size of illegal business in these industries was slightly more than Rs 2.60 lakh crore in the year 2019-20. The FMCG industry accounted for 75 percent of the total illegal business in 5 major industries.
Loss of Rs 58,521 crore
FICCI’s committee against smuggling and counterfeiting activities damaging the country’s economy says that, “The estimated tax loss to the government due to illegal goods in these 5 major industries is Rs 58,521 crore. These 5 industries include FMCG food items, FMCG household and personal use items, mobile, tobacco and liquor industries. Of the total tax losses to the government due to illegal trade in these 5 major industries, 2 highly regulated and high tax industries – tobacco products and alcohol. They account for about 49 percent of the total tax loss.
illegal trade continues
According to the report, the maximum number of 7.94 lakh jobs have been lost in FMCG food items due to illegal trade. This is followed by the loss of 3.7 lakh jobs in the tobacco industry, 2.98 lakh in the FMCG domestic and personal use industry, 97,000 in the liquor industry and 35,000 in the mobile phone industry.
so much damage
The government has suffered a tax loss of Rs 17,074 crore due to illegal trade in FMGC food items in 5 sectors. 15,262 crore in liquor industry, Rs 13,331 crore in tobacco industry, Rs 9,995 crore in FMCG domestic and personal use industry and Rs 2,859 crore in mobile phone industry.
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