Press Esc to close
Sunday 01 May 2016
News updated at 10:54 PM IST
Weather
Max: 36.6°C
Min : 24.4°C
In Bengaluru
Sunny day

Govt loses Rs 26k cr in taxes to smuggling, counterfeiting

New Delhi, Dec 20, 2012, PTI:

Smuggling and counterfeiting is estimated to cost the government a whopping Rs 26,190 crore in tax losses annually, a study conducted by industry chamber Ficci said.

The report, part of the campaign on consumer rights, on the socio-economic impact of counterfeiting, smuggling and tax evasion on seven key Indian industry sectors was released today.

The special study brought out by Ficci and Committee Against Smuggling and Counterfeiting Activities Destroying the Economy (CASCADE) added that overall the industry bears an annual sales loss of Rs 1 lakh crore due to these two menaces.

"According to the study the estimated annual tax loss to government is Rs 26,190 crore. The overall estimate of annual sales loss to industry is put at Rs 1,00,000 crore as per the report," the study prepared by Thought Arbitrage Research Institute (TARI) said.

The key sectors which were included in the study were auto components, alcohol, computer hardware, FMCG (personal goods), FMCG (packaged goods), mobile phones and tobacco. The report is an attempt to estimate the size of the grey market for selected industry sectors in India and projected the economic loss to industry, government and consequent social impact, Ficci said.

"The maximum tax loss on account of smuggled and counterfeit products to government is from the tobacco sector at Rs 6,240 crore followed by FMCG (packaged food) at Rs 5,660 crore and FMCG (personal goods) at Rs 4,646 crore," it added.

The highest loss to industry in terms of revenue is from FMCG (packaged goods) at Rs 20,378 crore (23.4 per cent), FMCG (personal goods) at Rs 15,035 crore (25.9 per cent), auto components at Rs 9,198 crore (29.6 per cent), mobile phones at Rs 9,042 crore (20.8 per cent) and tobacco at Rs 8,965 crore (15.7 per cent), it said.


Go to Top

Photo Gallery
Bollywood Actors Tiger Shroff and Shraddha Kapoor during promotion of their film Baaghi...

Bollywood Actors Tiger Shroff and Shraddha Kapoor during promotion of their film Baaghi...

Narendra Modi rides in an E rickshaw during distribution of E rickshaws in Varanasi...

Narendra Modi rides in an E rickshaw during distribution of E rickshaws in Varanasi...

RCB Skipper Virat Kohli with teamate Chris Gayle during an event at a mall in Bengaluru...

RCB Skipper Virat Kohli with teamate Chris Gayle during an event at a mall in Bengaluru...

A potter makes small earthen pots on International Labor Day, on the outskirts of Ajmer...

A potter makes small earthen pots on International Labor Day, on the outskirts of Ajmer...

Aishwarya Rai and Abhishek Bachchan poses with newly wed couple Bipasha Basu and Karan Singh...

Aishwarya Rai and Abhishek Bachchan poses with newly wed couple Bipasha Basu and Karan Singh...

A Mirage appears on the Rajpath as the mercury rises in New Delhi on Sunday...

A Mirage appears on the Rajpath as the mercury rises in New Delhi on Sunday...

eam Haas driver Esteban Gutierrez of Mexico, right, and Force India driver Nico Hulkenberg...

eam Haas driver Esteban Gutierrez of Mexico, right, and Force India driver Nico Hulkenberg...

A boy admires plastic balls put up for sale at India Gate lawns in New Delhi on Sunday...

A boy admires plastic balls put up for sale at India Gate lawns in New Delhi on Sunday...

Indian Air Force Helicopter collects water from Koteshwar dam during the rescue operation...

Indian Air Force Helicopter collects water from Koteshwar dam during the rescue operation...

Children enjoy in the waters of a fountain to beat the heat at India Gate as the mercury rises...

Children enjoy in the waters of a fountain to beat the heat at India Gate as the mercury rises...