Archive · 20 Jan 2026
Retailers Warn of Smuggling Surge from Tax Hikes
Small shopkeepers in India are worried about a big increase in taxes on cigarettes.
They think this will make people buy more smuggled cigarettes instead of the legal ones.
This could hurt their businesses.
A group called Swadeshi Jagran Manch (SJM) agrees and says that high taxes often lead to more smuggling.
They want the government to think carefully before raising taxes too much.
Other groups, like the All India Consumer Products Distributors Federation (AICPDF) and the Indian Sellers Collective, also warn that this could make it harder to stop smuggling and could even help illegal groups.
They say the government should find a balance between taxes and stopping smuggling.
Small retailers in India fear losing sales to smuggled cigarettes due to a steep tax hike effective February 1, 2026.
The Swadeshi Jagran Manch (SJM), affiliated with the RSS, supports these concerns, warning of a rise in illicit trade.
Dr. Ashwani Mahajan of SJM cautions that high taxes on 'sin goods' historically expand the black market, benefiting foreign producers.
The All India Consumer Products Distributors Federation (AICPDF) warns that steep tax hikes could harm traditional retail systems and boost smuggling.
The Indian Sellers Collective highlights that aggressive tobacco taxation, as seen in Australia, can backfire and strengthen illegal networks.
- Who
- Small retailers, Swadeshi Jagran Manch (SJM), All India Consumer Products Distributors Federation (AICPDF), Indian Sellers Collective
- What
- Concerns over increased smuggling of cigarettes due to upcoming tax hikes
- When
- Effective February 1, 2026
- Where
- India
- Why
- High taxes on cigarettes may lead to a surge in smuggled, illicit products, harming domestic retailers and the economy
- Organization
- Swadeshi Jagran Manch (SJM)
- National Co-Convener
- Dr. Ashwani Mahajan
- National President of AICPDF
- Dhairyashil Patil
- Member of Indian Sellers Collective
- Abhay Raj Mishra
- Effective Date of Tax Hike
- February 1, 2026
- Primary Concern
- Increase in Smuggled Cigarettes
- Impacted Group
- Small Retailers and Kirana Shopkeepers
- Global Example
- South Africa's Cigarette Manufacturing Shutdown
