Tobacco Tax Evasion Uncovered: A Costly Clandestine Affair
The government reported 61 cases of tax evasion in the tobacco sector, including gutka and cigarettes, worth Rs 104.38 crore by June 2025. Authorities aim to bolster compliance and identify unregistered entities. The Food Safety and Standards regulations outline guidelines for pan masala, but not for gutka.
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- India
The Indian government has identified 61 instances of tax evasion involving tobacco products like gutka and cigarettes, amounting to Rs 104.38 crore, by June this financial year, according to a report presented to the Lok Sabha.
Minister of State for Health, Prataprao Jadhav, highlighted the difficulties in estimating revenue loss from illegal tobacco trade, as it remains largely clandestine.
Efforts to improve tax compliance include educating CGST and DGGI officers to detect evasion and non-registered entities. Regulations for pan masala are clearly defined, though similar guidelines for gutka remain absent.
(With inputs from agencies.)
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