GUWAHATI, July 28 - Assam loses revenue to the tune of Rs 600 crore annually due to the illegal trade in cigarettes. In fact, the State is turning into the fastest growing market for such illegal trade in cigarettes and liquor in the country. With a decline in the legal supply of cigarettes, the illegal trade in tobacco products has swelled to 25 per cent of the total cigarette trade in the State.
A study by FICCI CASCADE (Committee Against Smuggling and Counterfeiting Activities Destroying the Economy) suggests that tobacco products cause the maximum revenue loss to the exchequer in the country � a whopping Rs 9,139 crore in 2014 � followed by mobile phones and alcoholic beverages. The neighbouring state of Meghalaya loses nearly Rs 100 crore revenue due to this.
Due to a porous border, the north-eastern states have become a distribution centre for the rest of the country for cheap cigarettes smuggled in from neighbouring countries.
Unveiling its report, �Illicit Market: A Threat to Our National Interest� here, FICCI CASCADE adviser PC Jha said that high tax rates, especially higher VAT, had led to such illegal trade in many states.
�During the last 20 years, the volume of counterfeiting activities has increased 100 times and the size of the trade in counterfeit goods is 10 per cent of the legal international trade,� Jha pointed out.
In Assam, the illegal market of liquor has also grown significantly, especially in the Indian made foreign liquor and imported liquor.
Deep Chand, adviser to FICCI CASCADE and former Special Commissioner of Police, New Delhi, shared concerns like the possibility of terrorist organisations� involvement in the illegal trade.
�In the past few decades, leading intelligence and law enforcement agencies around the world have found conclusive evidence of the increasing involvement of terrorist organisations in counterfeiting, piracy and smuggling activities to fund their activities. While several counterfeiting outfits are transferring portions of their proceeds to terrorist organisations, some of these are set up for the sole purpose of financing terrorism,� he said.
Mukesh Sahay, Additional Director General of Police, Crime Branch, CID, Assam, said that though no concrete evidence of the involvement of militant organisations in such activities has been found in the State, the possibility cannot be ruled out, in view of the global phenomenon.
�The major flaw lies in the implementation of rules. Here in Assam, we are more concerned about conventional crimes and insurgency. In view of the expansion of the illegal trade, market intelligence needs to be developed and a synergetic partnership between the companies concerned and the police is necessary,� he added.
