
Government loses crores to illicit trade of goods and products, claims FICCI study
Illicit trade related to tobacco led to a loss of Rs 9,139 crore to the exchequer, a study released by FICCI on Friday has revealed.
The exchequer also bore losses due to illicit trade of mobile phones at Rs 6,705 crore and alcoholic beverages at Rs 6,309 crore, the FICCI report said.
The study, by FICCI CASCADE (Committee Against Smuggling and Counterfeiting Activities Destroying the Economy), also establishes a relationship between high taxes and availability of illicit products.
“High tax rates tend to exacerbate illicit markets by creating greater demand for cheap and counterfeit substitutes. A significant reason being that high tariffs and taxes create opportunities for those involved in illicit markets to step in and supply ‘reduced’ versions of the original product at lower prices,” said the report, titled ‘Combating Counterfeiting and Smuggling – An Imperative to Accelerate Economic Development for the period 2014-15’.
Related Posts
Worldwide Protection Against Counterfeiting
Many brands are struggling with massive product piracy problems and the resulting...
Interpol wants to join the ‘fake drugs’ battle, Indian government fights shy
The International Criminal Police Organisation, popularly known as Interpol,...
Quebec man arrested after traffic stop nets nearly 3 million smuggled cigarettes.
A 64-year-old Quebec man is in jail pending a bail hearing after a traffic stop...
Warning up vs fake, smuggled cigarettes
The rampant rise and open selling of smuggled cigarettes in many parts...