Illegal market for alcohol and tobacco has been rapidly growing in Odisha. Illegal cigarette industry is estimated at more than 20 per cent of the total cigarette market in the State while for alcohol the illegal market is growing significantly in value and much higher in quantity especially for IMFl and imported liquors. These two sectors are amounting to more than hundreds of crores in losses to the Odisha Government.
This was revealed by the FICCI CASCADE (Committee against Smuggling and Counterfeiting Activities Destroying the Economy), which on Friday unveiled its nine sector report titled, ‘Illicit Market: A Threat to Our National Interest’.
“High State level taxes on legal cigarette industry resulting in high prices for legal cigarettes are the key reasons for such an impressive growth of illegal cigarette industry in the State. Most of the manufacturers of such illegal cigarettes based in neighbouring States evade the high Central Excise Duty and State Tax and thus are able to offer their products to consumers at rock-bottom prices,” said the report.
“High tax on cigarettes in Odisha compared to the rest of the country has aided growth of the illegal cigarette industry in the State. The mushrooming illegal cigarette industry in Odisha results in a loss of over hundreds of crores in revenue from the cigarette industry. It is thus clear that the objective of generating high revenue from the cigarette industry in the State with a high tax rate has been soundly defeated. Government has lost heavily in revenue while traders of the State have lost their business to smugglers and antisocial elements,” the report stated.
FICCI CASCADE advisor PC Jha, Deep Chand and Additional DGP (Headquarters) Satyajit Mohanty unveiled the report.