Over 3.34 Lakhs Jobs are lost due to smuggling of cigarettes
FICCI’s Committee Against Smuggling and
Counterfeiting Activities Destroying the Economy (CASCADE) applauds the
Directorate of Revenue Intelligence (DRI), who in a major haul seized foreign
brand cigarettes worth Rs 11.88 crore from a container at the Jawaharlal Nehru
Port Trust (JNPT) in Navi Mumbai on June 12, 2020. This is one of the biggest
seizures since lockdown. Amid lockdown, several cases of seizures by
enforcement agencies of smuggled imported cigarettes have been reported
indicating a spike in cigarette smuggling over the last few months. The trend
is nationwide, with seizures intercepted via road transport, in cargo and
passenger luggage.
Congratulating the officers of DRI, Mr. Anil
Rajput, Chairman, FICCI CASCADE said “Cigarette smuggling is a big racket
across the globe and India
continues to remain a hot bed for this menace. Even as the country is grappling
with the coronavirus crisis, the seizures of such goods remain high. The
efforts made by the officers who are working under the current challenging
circumstances is indeed commendable”.
For developing countries, widespread smuggling has
a particularly debilitating effect on efforts to improve domestic resource
mobilization, by denying tax revenues, which subsequently affect government spending
on healthcare, education, infrastructure etc. Not only does smuggling dent
government exchequer but also threatens local industries on which depends
livelihood of many. In a recent study by FICCI CASCADE, it had estimated that
over 16 lacs jobs were lost in India
(in 5 industry sectors) in 2017-18 due to smuggling, out of which about 3.34
lacs of job loss was due to smuggling of cigarettes.
The government of India has taken several decisive
steps to address this issue. Inspite of several measures, further steps are
required, both in the form of policy intervention and awareness generation.
FICCI CASCADE in its recommendations to curb illicit trade to government
earlier this year had suggested a reward scheme for the officers to be put in
place for tobacco on the same lines like narcotics and psychotropic substances
which are also destroyed after seizure. The amount of reward in such cases
could depend on a flat rate linked to the quantity of goods seized and the
gravity of offence involved.
Further, modernization of the infrastructure and
equipment’s being used by customs was also suggested so that foolproof methods
of clearance of goods are introduced, thereby raising the capacity of Indian
customs. These recommendations were based out of the deliberations of CASCADE’s
annual international symposium MASCRADE (Movement Against Smuggled and
Counterfeit Trade) which was held in September 2019.
Illicit trade is the world’s largest growing
industry and its size is estimated to range between $650 million to $3 trillion
according to multiple studies, representing 10% of global trade. Besides
unemployment and massive financial losses, it also creates large scale
destabilization by fomenting crime and funding insurgency and terrorism. FICCI
CASCADE has been over the years working closely with government, industry,
enforcement officials, legal fraternity, consumer organizations and the
consumers to create awareness on the adverse impact of this menace.