Budget 2018: Disincentivise cigarette smuggling through tax policy, says farmers body

Seizure of smuggled cigarettes has doubled in the last two years indicating the increase in smuggling.

PTI January 16, 2018 16:27:49 IST
Budget 2018: Disincentivise cigarette smuggling through tax policy, says farmers body

New Delhi: Ahead of the budget, farmers body FAIFA today asked the government to have a taxation policy that curbs cigarette smuggling, saying Indian tobacco growers are suffering due to it.

The Federation of All India Farmer Associations (FAIFA), claiming to represent farmers of commercial crops across Andhra Pradesh, Telangana, Karnataka and Gujarat among others, said steep increase in tobacco taxation in the recent past led to growth of smuggling of cigarettes in the country.

Budget 2018 Disincentivise cigarette smuggling through tax policy says farmers body

Reuters

"We appeal to the government to have a taxation policy, that disincentivises cigarette smuggling," FAIFA General Secretary Murali Babu said in a statement.

FAIFA said seizure of smuggled cigarettes has doubled in the last two years indicating the increase in smuggling.

With the smuggled products cheaper, there has been a shift in consumption which affected Indian tobacco farmers adversely as the smuggled cigarettes do not use Indian tobacco, it added. This has resulted in drop in earnings of Flue Cured Virginia (FCV) tobacco farmers which have shrunk cumulatively by more than Rs 3,300 crore since 2013-14, FAIFA claimed.

Babu said India has a huge and wide-spread dependence on the tobacco crop for livelihood. "The socio-economic importance of tobacco and its employment-generation capacity should not be overlooked while
framing tobacco taxation and regulatory policies in India," he added.

For full coverage of Union Budget 2018, click here.

Updated Date:

also read

Budget 2018: Eight measures Arun Jaitley should look into to provide relief to taxpayers
Business

Budget 2018: Eight measures Arun Jaitley should look into to provide relief to taxpayers

Hopefully the Budget will provide for an exclusive tax exemption of up to Rs. 20,000 for premiums paid towards a term insurance in addition to the current 1.5 lakh available for life.

Budget 2018: Personal income tax unchanged; other key highlights of Arun Jaitley's fifth budget
Business

Budget 2018: Personal income tax unchanged; other key highlights of Arun Jaitley's fifth budget

Finance Minister Arun Jaitley on Thursday did not provide any relief in the income tax rates for 2018-19.

Budget 2018: Remove import duty on raw materials, urges stainless steel industry
Business

Budget 2018: Remove import duty on raw materials, urges stainless steel industry

The import duty on ferro-nickel is 2.5% and the raw material has to be imported because India hardly has any nickel resources, the association said