Tobacco Products like Cigarette, Bidis (India specific), Cigars are regulated industry in most countries. Tobacco products are called sin products so most governments tax them heavily. Some countries issue tax stamps or revenue labels to control revenues, prevent counterfeits and loss to exchequer. In some ways, the situation is not very different from another regulated industry – Spirits & Wines.
Tax Stamps and Excise Revenue Labels – CPIGS
Since March 2015, DRI and customs in Gujarat have seized around 4.96 crore cigarette sticks worth INR 37.29 crore with over 90 percent of the hauls coming from Mundra port. Department in Hyderabad early this year exposed a similar racket, followed by a major seizure of 3.21 crore cigarettes of the high-value brands, valued at INR 23.29 crore from the Adani Hazira port in Gujarat. In both the instances, smuggling was reported to transpire from Dubai.
As per industry sources, the Indian tobacco market (excluding bidi and production of all tobacco products made in non-factory enterprises including home and tiny units) was estimated to be worth Rs 65,000 crore.
in 2014. Based on the industry projections, the loss of sales to the industry has been calculated as per the formula:
Estimated size of industry in 2013-14 x Grey market percentage (2011-12) = Estimated loss of sales to industry
Rs 65,000 crore x 20.2% = Rs 13,130 crore
Thus, the loss of sales to the industry for 2014 was estimated to be Rs 13,130 crore.
CPIGS is of the view that using combination of interlinked secure coded QR Code on inner flap, and on Outer Pack and Carton shall help authenticate product integrity and enable track & trace capability.