About Rs 39,000-crore loss in one year due to illicit markets in manufacturing sectors: FICCI report

Illicit market in just seven select manufacturing sectors including FMCG, packaged foods, tobacco, alcohol and mobile phones had led to a loss to the nation to the tune of Rs 32,239 crore during 2014, a report released by FICCI said on Tuesday. The FICCI report prepared by its Committee Against Smuggling and Counterfeiting Activities Destroying the Economy and titled “Illicit Market: A Threat to Our National Interest” released here said the loss was inclusive of both direct and indirect taxes, with the indirect taxes component working out to a whopping Rs 34,020 crore. While counterfeiting and illicit trade in tobacco products accounted for the maximum revenue loss – nearly 23 per cent of the total loss which works out to about Rs 9139 crore, mobile phones accounted for 17 per cent (Rs 6705 crore), alcohol 16 per cent (Rs 6309 crore), and FMCG packaged food also about 16 per cent (Rs 6096 crore), the report said. The study also revealed that during the course of two years from 2011-12 to 2013-14, revenue loss to the government had grown exponentially by Rs. 13,049 crores, an increase by 49.8 per cent. Assam, the report said, has seen a significant growth in illicit trade among these sectors in the last couple of years with the state emerging as one of the fastest growing markets for illegal cigarettes and alcohol in the entire country.

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