From: The Hindu
FICCI report says that Chennai has become a distribution centre for the rest of India for large-scale smuggling of international contraband cigarettes.
Tamil Nadu is one of the fastest growing places for illegal trade in cigarettes and alcohol in India, with the industry estimated to be about 20 per cent of the total cigarette market in the State, according to FICCI Committee Against Smuggling and Counterfeiting Activities Destroying the Economy (FICCI-CASCADE).
A report released on ‘Illicit Markets- A threat to Our National Interests’ that mapped seven sectors in the manufacturing industry in India says Tamil Nadu suffered a revenue loss of about 50 per cent from the cigarette industry ever since VAT on cigarettes was increased.
The report says the total loss on account of direct and indirect tax revenues to the Indian government in 2014 was estimated at Rs.39,239 crore, increasing from Rs. 26,190 crore in 2012.
