Government lost Rs 58,521 crore in taxes due to illicit goods in 5 industries – The New Indian Express

0

Express press service

NEW DELHI: The estimated fiscal loss to the government due to illicit goods in five industries – mobile phones, FMCG household and personal goods, FMCG packaged food, tobacco products and alcoholic beverages – amounted to Rs 58,521 crore during fiscal year (FY) 2019-20, according to a report.

According to the FICCI Committee Against Smuggling and Counterfeiting Activities Destroying the Economy (CASCADE) report released Thursday, two highly regulated and taxed industries, tobacco products and alcoholic beverages, account for nearly 49% of the government’s overall tax loss even then. that their total illicit trade size was much smaller than that of the FMCG industry.

The tax loss in these sectors amounted to Rs 17,074 crore (FMCG packaged food), Rs 15,262 crore (alcoholic beverages), Rs 13,331 crore (tobacco products), Rs 9,995 crore (FMCG household and personal goods) and Rs 2,859 crore (mobile phone(s).

The government levies a 58.14% tax on tobacco products (excluding bidis), while the tax on alcoholic beverages, based on analysis of 14 liquor companies and tax authorities. excise they pay is around 64 to 65%. Therefore, the tax loss due to illicit trade in these sectors is much greater than in other sectors which attract taxes between 12 and 18%.

FICCI estimated the size of illicit markets in five industries to be Rs 2,60,094 crore for the year 2019-20, with FMCG industry household and personal goods and packaged food together accounting for three quarters of the value total illegality.

The FMCG packaged food industry held the highest illicit market share at Rs 1,42,284 crore and was followed by FMCG household and personal goods at Rs 55,530 crore, alcoholic beverages at Rs 23,466 crore, tobacco products at Rs 22,930 crore and mobile phones. at Rs 15,884 crore

The report further estimates a legitimate job loss of 15.96 lakh due to the illicit trade. The maximum number of jobs (7.94 lakh) was lost in the labor-intensive FMCG packaged food industry, followed by tobacco (3.7 lakh), FMCG household and personal goods ( 2.989 lakh), alcoholic beverages (0.979 lakh) and mobile phone industry. (0.35 lakh).

Anil Rajput, President of FICCI CASCADE, said: “Smuggling is the deadliest form of illicit trade. In addition to causing serious damage to the public purse in the form of lost revenue, proliferating terrorism by allowing terrorist groups to obtain funds, and impacting the health and safety of consumers, leads to unemployment by exporting jobs out of the country.

NEW DELHI: The estimated fiscal loss to the government due to illicit goods in five industries – mobile phones, FMCG household and personal goods, FMCG packaged food, tobacco products and alcoholic beverages – amounted to Rs 58,521 crore during fiscal year (FY) 2019-20, according to a report. According to the FICCI Committee Against Smuggling and Counterfeiting Activities Destroying the Economy (CASCADE) report released Thursday, two highly regulated and taxed industries, tobacco products and alcoholic beverages, account for nearly 49% of the government’s overall tax loss even then. that their total illicit trade size was much smaller than that of the FMCG industry. The tax loss in these sectors amounted to Rs 17,074 crore (FMCG packaged food), Rs 15,262 crore (alcoholic beverages), Rs 13,331 crore (tobacco products), Rs 9,995 crore (FMCG household and personal goods) and Rs 2,859 crore (mobile phone(s). The government levies a 58.14% tax on tobacco products (excluding bidis), while the tax on alcoholic beverages, based on l he analysis of 14 alcohol companies and the excise taxes they pay is in the range of 64-65%, therefore the tax loss due to illicit trade in these sectors is much greater than in other sectors. ‘other sectors which attract taxes between 12 and 18%.FICCI estimated the size of illicit markets in five industries to be Rs 2,60,094 crore for the year 2019-2020, industry household and personal goods FMCG and packaged food together account for three quarters of the total illicit value. és FMCG held the highest share of the illicit market at Rs 1,42,284 crore and was followed by FMCG household and personal goods at Rs 55,530 crore, alcoholic beverages at Rs 23,466 crore, tobacco products at Rs 22,930 crore and mobile phones. at Rs 15,884 crore The report further estimates a loss of legitimate employment of 15.96 lakh due to the illicit trade. The maximum number of jobs (7.94 lakh) was lost in the labor-intensive FMCG packaged food industry, followed by tobacco (3.7 lakh), FMCG household and personal goods ( 2.989 lakh), alcoholic beverages (0.979 lakh) and mobile phone industry. (0.35 lakh). Anil Rajput, President of FICCI CASCADE, said: “Smuggling is the deadliest form of illicit trade. In addition to causing serious damage to the public purse in the form of lost revenue, proliferating terrorism by allowing terrorist groups to obtain funds, and impacting the health and safety of consumers, leads to unemployment by exporting jobs out of the country.

Share.

Comments are closed.