Swadeshi Jagran Manch says rising smuggled cigarette threat to govt revenue, public health

NEW DELHI: Expressing grave concern, the Swadeshi Jagran Manch (SJM), affiliated with the Rashtriya Swayamsevak Sangh, has warned that the increasing influx of smuggled foreign cigarettes is severely affecting both government revenues and public health.

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High taxes on sin goods have historically led to expansion of the black market, with smuggled products - often benefiting foreign producers - filling the gap created by unaffordable legal prices, Swadeshi Jagran Manch (SJM) national Co-Convener Ashwani Mahajan said.

There is a need to have a balanced approach, he said, making a case for stronger enforcement against smuggling networks.

These concerns assume significance as the country prepares for a sharp increase in cigarette taxes effective February 1.