Assam to set up panel to study illegal trade in imported cigarettes

GUWAHATI: Assam Chief Minister Tarun Gogoi on Wednesday ordered the setting up of a committee to inquire illegal trade in imported cigarettes in the state and find ways to stop it. The panel will be headed by the additional chief secretary.

The step follows a report of the Ficci CASCADE (Committee against Smuggling and Counterfeiting Activities Destroying the Economy), which said Assam had seen significant growth in illicit trade in the past couple of years. The report was released on Tuesday.

Assam has seen an influx of cheap king-size cigarettes from Bangladesh, China and Myanmar into Assam. In fact, the Northeast has become a distribution centre for such cheap smuggled cigarettes.

The committee will study different aspects contributing to illegal trade in cigarettes and come out with a strategy to firm up the state’s action to stop it, the state government said.

According to the Ficci report, while the supply of legal cigarettes has shown a decline, illegal players have taken over the market. In case of alcohol too, the illegal market has grown significantly in the state in value and volume.

Since the manufacturers of illegal cigarettes evade steep central excise duty and state taxes, they could offer their products to consumers at rock-bottom prices, the report said. Such cigarette packs in Assam cost one-fifth of the price of the regular ones.

Assam shares a porous international border with Bangladesh.