Fwd: FICCI CASCADE Unveils ‘Illicit Market:A Threat to Our National Interest’

By 121 News

Chandigarh 06^th August:- FICCI CASCADE (Committee against Smuggling & Counterfeiting Activities Destroying the Economy), unveiled its nine sector report titled - 'Illicit Market: A Threat to Our National Interest' at a hotel here today. This is a quantitative study evaluating the impact of illicit markets on various economic aspects in the Manufacturing Industry including sectors like FMCG Packaged Foods and Personal Goods, Computer Hardware, Automobiles, Mobile Phones, Tobacco & Alcohol and secondly - the Media and Entertainment Industry including the Broadcasting and Motion Pictures sectors.

P.C.Jha, Adviser FICCI CASCADE and former Chairman, Central Board of Excise & Customs said that during the last twenty years, the volume of the counterfeiting activity has increased 100 times and the size of trade in counterfeited goods is 10% of the legal international trade (around 2% of the world's overall economic output). Quoting the recently released FICCI CASCADE study, Mr. Jha stated that the loss to manufacturing related sectors has increased by 44.4% in the two years, from Rs72,969 crore in 2011-12 to Rs 105,381 in 2013-14.

He added that as per the report, the total loss to the government estimated for 2014, on account of the illicit markets in respect of the seven sectors manufacturing industry is Rs 39,239 crores, up from Rs 26,190 crores in 2012.  The loss is inclusive of both indirect and direct taxes -- the indirect taxes component is Rs. 34,020 crore and direct taxes is Rs. 5,218 crore. The study has also discovered that during the course of two years from 2011-12 to 2013-14, revenue loss to the Government has grown-up exponentially by Rs. 13,049 crores, an increase by 49.8%. Amongst the various sectors, the maximum revenue loss to the exchequer on account of counterfeiting and illicit trade is attributed to tobacco products at 23%, estimating a revenue loss of Rs. 9139 crores.

Deep Chand, Adviser FICCI CASCADE and former Special Commissioner of Police, New Delhi said that in the past few decades, leading intelligence and law-enforcement agencies around the world have found conclusive evidence of the increasing involvement of terrorist organizations in counterfeiting, piracy and smuggling activities to fund their activities. While several counterfeiting outfits are transferring portions of their proceeds to terrorist organizations, some of these are set up for the sole purpose of financing terrorism. The need of the hour is tangible actions to increase enforcement and to impose increased punishments. This is imperative to reassure legitimate business owners and consumers that the government is serious about protecting right owners which, in turn, would elicit greater support for government policies.

 A S Cheema, DIG Police, Chandigarh shared his views about the extent of the menace in the state and also highlighted the various initiatives taken by the Punjab Police to curb this growing socio-economic threat. He also thanked FICCI CASCADE for taking up the issue and said that the masses should say 'NO' to smuggled good.