58521 Crore Loss Due To Illegal Business Of 2.60 Lakh Crore In 5 Industries : FICCI

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58521 Crore Loss Due To Illegal Business Of 2.60 Lakh Crore In 5 Industries : FICCI
23 Sep 2022
6 min read

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News Synopsis

Illegal business in five core industries including everyday consumption goods (FMCG), tobacco products, mobile phones, and liquor has cost the exchequer Rs 58,521 crore as taxes in 2019-20. Industry body Federation of Indian Chambers of Commerce and Industry (FICCIsaid in a report on Thursday, the size of illegal business in these industries was slightly more than 2.60 lakh crore in 2019-20.

The report said that the FMCG industry accounted for 75 percent of the total illegal business in five major industries. Two highly regulated and highly taxed industries are tobacco products and alcohol in the total tax loss to the government. These two together account for about 49 percent of the total tax loss to the government. 

Illegal trade in these five sectors resulted in a loss of tax of 17,074 crores to the government on FMCG food items. 15,262 crores in the liquor industry, 13,331 crores in the tobacco industry, and 9,995 crores in the FMCG domestic and private use industry. There was a tax loss of Rs 2,859 crore in the mobile phone industry.

FICCI said in its report that due to illegal business in five major industries, about 16 lakh people lost their jobs during 2019-20. During this period, the highest number of 7.94 lakh jobs were created in FMCG food items. This was followed by 3.7 lakh jobs in the tobacco industry, 2.98 lakh in the FMCG domestic and private use industry, and 97,000 in the liquor industry. In addition, 35,000 people lost their jobs in the mobile phone industry.

TWN Tech Beat