
Authorities found 61 cases of tax evasion dealers of tobacco products such as gutka, cigarettes and Mr. Masala throughout the country, which is in line with £104.38 Crore by June in this financial year.
The information was provided by Lok Sabha on Friday in response to whether the government assessed the scope of tax evasion, illegal trade and unregulated production in the Zarda sector.
Hard to estimate the loss of income
In the written response, the Minister of Foreign Affairs Prataprao Jadhav said that the Ministry of Income reported that an illegal trade in tobacco products is a secret activity, which makes it more difficult to estimate the loss of income.
However, Jadhava’s response confirmed that “Central goods and CGST) and Directorate General Directorate for Tax and Directors (DGGI) Directorate (DGGI) found 61 cases (tax evasion) of Gutka/chewing tobacco/cigarette/Mr. Masala (entities) £104.38 crore in the current financial year until June 2025. ”
Coercive measures and compliance with regulations
Regarding the steps taken to strengthen the coercive measures, Jadhav explained that DGGI and CGST officers were sensitized to deal with this question.
They focused on verifying and strengthening the level of compliance with registered taxpayers and identifying unregistered entities that they receive them under the tax network.
Control framework for tobacco products
Jadhav also explained the regulatory environment surrounding tobacco products.
(Tagstotranslate) Tax evasion