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India Reports Q1 Illicit-Tobacco Spike: 61 Cases, Rs 104 Crore in Tax Evasion

Authorities are turning to track-and-trace to curb a smuggling surge.

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Overview

  • Government data show DGGI and allied units detected 61 illicit-tobacco cases in April–June 2025 involving Rs 104.38 crore in tax.
  • Customs field formations and the DRI seized about 3.93 crore cigarette sticks in the year to June 2025.
  • DRI records indicate smuggled-cigarette seizures rose by over 107% in volume and more than 110% in value between 2019–20 and 2023–24.
  • Seizures by the DRI, Assam Rifles, CRPF and others were estimated to top Rs 600 crore in FY25, according to former CBIC chief P.C. Jha.
  • The government has rolled out a manufacturer reporting regime and won Finance Act 2025 authority for a track-and-trace system with penalties, as experts warn high taxes and a proposed 40% slab risk expanding the grey market.