CHANDIGARH: Despite the efforts put in by the Punjab Excise and Taxation Department, the smuggling of sugar from neighbouring states of Haryana and Uttar Pradesh into the state is only getting bigger.
Within a month of the Punjab Government levying a tax of 11 per cent on sugar (under the Punjab Development of Trade, Commerce and Industry Act) to protect its domestic sugar industry, sugar dealers have got more innovative in smuggling the sweetener into the state.
From floating bogus trading firms in the border districts of Haryana; finding new escape routes to smuggle sugar; transporting sugar in small quantities rather than in bulk to avoid excise officials; to turning border towns that fall partly in Punjab and partly in Haryana into major sugar trading and warehousing hubs, the sugar lobby is leaving no stone unturned to avoid paying the tax.
This tax on sugar was announced on May 20 and finally imposed last month after the state government issued an official notification. The newly imposed 11 per cent tax literally translates into Rs 37,500 (for a truck carrying 150 quintals of sugar) to Rs 75,000 per truck (having a capacity of 300 quintals). Sources in the trade say that the tax is too high and makes it impossible for them to make any profit on the wholesale sale of the sweetener.
Top officials in the Punjab Excise and Taxation Department say that they are making their best efforts to curb this smuggling.
“We have set up mobile squads that are deployed in all border towns and are continuously nabbing sugar smugglers. Till date, our mobile teams have nabbed 55 vehicles and a penalty of Rs 74.23 lakh has been imposed on those found smuggling sugar,” said Gurtej Singh, Director (Investigations), Punjab Excise and Taxation Department.
“Since no state taxes are imposed on sugar, we did not have data on sugar dealers. Now, all district offices of the Excise and Taxation Department have been asked to collect data on these sugar traders and regularly inspect them to check if any stocks are reaching them without paying taxes,” said Gurtej.
For each consignment caught smuggling, 50 per cent of the value of sugar seized is imposed as penalty.
The department is also examining how several sugar traders in Punjab have opened bogus firms with addresses in border districts of Haryana, including Ambala.
