Cigarette Industry Welcomes Proposed Amendments to Enable a Track and Trace Mechanism

New Delhi,1st Feb, 2025: India faces a huge problem of illicit Cigarette trade with increasing volumes over the years.

Illicit cigarettes are 1/4th of the Indian Cigarette market and amount to as much as 1/3rd of legal cigarette volumes in the country.

The growing illicit trade has made India the 4th largest Illicit cigarette market in the world. Basis the current duty rates, industry estimates that the illicit trade results in an annual revenue loss of Rs.21,000 crores to the Government.

In addition, the domestic tobacco growers are adversely impacted as smuggled cigarettes do not use Indian tobaccos. This has resulted in loss of earnings and livelihood in the tobacco growing areas.

Illicit trade undercuts legitimate businesses and funds organised crime groups and terror organisations with its proceeds, often compromising national security.

The proposed amendments in The Central Goods and Services Tax Act, 2017, enabling a mechanism for Track and Trace, will help in controlling the illicit cigarette trade in the country by detecting and identifying the illegal operators/smugglers.

The Cigarette Industry welcomes this much needed initiative/measure which will assist in controlling the illicit menace in the country.