High taxes spur cigarette smuggling
Huge profit margins, high customs duty and increasing demand among youngsters has led to exponential increase in cigarette smuggling in the state. Gujarat has turned out to be the latest hotspot for cigarette smugglers, as cigarettes smuggled into the state increased by 40 times in four years. In 2012, three cases of cigarette smuggling were reported and 44.2 lakh cigarettes worth Rs 62 lakh were seized. There were no cases reported in 2013 and 2014, but in 2015, around 4.96 crore cigarettes worth Rs37.29 crore were seized by Directorate of Revenue Intelligence (DRI) and Customs in Gujarat. Over 90% of the hauls came from Mundra port.