Business experts and police officers have stressed a set of strategies to firmly deal with smuggling that ravages economy of the north eastern states.
Participating a meeting organized by FICCI on committee against smuggling and counterfeiting activities destroying economy in Guwahati on Tuesday, the speakers said that the growing problem needs to be solved early.
FICCI CASCADE adviser P C Jha talked of higher VAT in cigarettes which leads to increase in illegal trade. He urged the government to take note of it.
Assam and Meghalay are losing a total of Rs 700 crore revenue every year to illicit trade, he said adding that , VAT on cigarettes is as high as 30 per cent and 27 per cent in both the states.
According to additional DGP of Assam, states like Tripura and Sikkim levy VAT on cigarettes at the rate of 25 per cent and 22 per cent, Mizoram and Arunachal Pradesh at 20 per cent, while it is 18 per cent and 13.5 per cent in Nagaland and Manipur respectively.
FICCI report reveals the total loss on account of the illicit market estimated for 2014 in respect of seven sectors of the manufacturing industry is Rs 39,239 crore, up from Rs 26,190 crore in 2012.