Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: due date for vat payment :: articles on VAT and GST in India :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: VAT Audit :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: form 3cd :: TDS :: empanelment
 
 
VAT (Value Added Tax) »
 Cabinet clears key proposals on VAT, regularisation of jobs
 Cases of VAT overcharging flood consumer forum
 State seeks relief from Centre
 Flat rate VAT changes for small businesses explained
 Cenvat Credit Of Additional Duties Of Customs [Cvd] On Imported Coal
 Excise Dept puts VAT refund on fast track
 Consumer fora receive 18 VAT plaints
 Appointment of Assistant VATO - F.3(14)/Fin(Rev-I)2012-13/DSVI/334
 Bio-diesel body seeks VAT relaxation
 HC seeks Delhi, centre reply on restaurants charging excess VAT, service tax
 Shakti Autos booked for evading VAT, bogus sales

Increased tax leads to smuggling of cigarettes
September, 26th 2012

UP government decision to increased the Value Added Tax (VAT) on cigarettes from the earlier 17.5 per cent to 50 per cent has led to the inter-state smuggling of cigarettes.

Neighbouring states of Delhi, Uttarakhand, Haryana, Madhya Pradesh, Bihar, Jharkhand and Chhattisgarh have VAT rates of average 20 per cent. According to reports, inter-state smugglers are having a field day as they are able to transport cigarettes, hoodwinking the state authorities, and make huge illicit profits in the bargain.

UP traders' associations have been appealing to the state government drawing the government's attention to the rampant inter-state smuggling, and seeking the review the VAT hike decision which is giving greater power to inter-state smugglers who are ruining the environment of a legitimate business activity.

It is estimated that almost 25 per cent of the cigarette market has been captured by these illegal manufacturers. Their business growth spells more revenue loss for the UP government. This revenue loss, due to illegal manufacturing, runs into hundreds of crores, say industry observers.

No amount of VAT hike can substitute this revenue loss to the State Exchequer due to illegal manufacturing. As per the latest Euromonitor data, illicit trade in cigarettes has been steadily increasing in India.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions