AHMEDABAD: The lure of puffing a foreign brand cigarette is now not only limited to metros but also in small cities people want to have it leading to high demand. This demand is being fuelled by cigarettes brought illegally in the country. These foreign-made cigarettes are in high demand among youngsters, especially girls in the metros. These cigarettes are sold to the wholesalers on the profit margin of around 45% on the import value. Cigarette of different brands like Malimbo Superslims, Marso Superslims, Mond Superslims, Richman Superslims, Gudan Garam, Luvin Fresh and Djarum Black are in huge demand in the country and are also the most smuggled.
Huge margin, increasing demand in local markets and high customs duty has led to exponential increase in cigarette smuggling in last few months. Gujarat is fast becoming a transit point for smugglers to illegally bring in cigarettes in the state.
Since March 2015, around 4.96 crore cigarette sticks worth Rs 37.29 crore have been seized by DRI and Customs in Gujarat with over 90% of the hauls coming from Mundra port.
In last fortnight, in two different seizures, around 86 lakh cigarette sticks worth Rs 6 crore has been seized by the Ahmedabad zonal unit of the Directorate of Revenue Intelligence (DRI).
Last month Federation of Indian Chambers of Commerce and Industry’s (FICCI) Committee Against Smuggling and Counterfeiting Activities Destroying the Economy (CASCADE) had claimed that the illicit trade of tobacco is rapidly growing in Gujarat. “Gujarat is one of the fastest growing markets for illegal cigarettes and auto components in the country. The supply of legal cigarettes shows a decline, the illegal players have taken over this market and is growing at a higher rate,” said PC Jha, Adviser FICCI CASCADE and former Chairman, Central Board of Excise and Customs while unveiling a report on ”Illicit Market: A Threat to Our National Interest’.
In case of auto components and computer hardware, the illegal market in the state is also growing significantly in terms of value and volume. These sectors are amounting to more than hundreds of crores in loses to the Gujarat Government.
“High VAT (Value Added Tax) makes legally traded cigarettes expensive. This is the reason for rapid- growth of illegal cigarette industry in the state,” added S. S. Trivedi, IGP (Economic Offenses Wing, CID Crime), Government of Gujarat.
The longest coastline with a number of ports and international airport make Gujarat vulnerable to smuggling of cigarettes.
