Illicit cigarettes in India: Need for stronger enforcement, say experts

With illicit cigarettes forming a large part of India's market, a move by the Maldives to cut import duty has sparked debate. Experts stress that strong enforcement and supply-chain monitoring must support tobacco taxation to protect public health.

As illicit cigarettes account for over one-fourth of India's cigarette market, tobacco taxation must be backed by stronger enforcement to safeguard both public health and government revenues The Maldives' decision to reduce cigarette import duty by 50% after a surge in illicit tobacco trade has renewed debate over how governments can balance tobacco taxation with effective enforcement.

Public health and policy experts say the development reinforces an important insight for India: tobacco taxation delivers the best outcomes when supported by strong enforcement, robust supply-chain monitoring and sustained action against illicit trade.

The Maldives' Precedent and Global Lessons

The Maldives recently reduced cigarette import duty from MVR 8 to MVR 4 per pack after authorities reported that previous tax increases had fuelled the growth of the illicit tobacco market, eroding legal sales and government revenues. The policy review has attracted international attention because the country was recognised by the World Health Organisation (WHO) with the 2024 World No Tobacco Day Award for strengthening tobacco-control measures, including higher tobacco taxation. Speaking in Parliament, Maldives Minister of Finance and Planning Moosa Zameer said the decision followed discussions with the WHO and was intended to curb the growing illicit tobacco market after earlier tax increases encouraged consumers to shift to illegal products.

The Maldives joins a number of countries that have encountered similar challenges. Bhutan eventually relaxed its long-standing tobacco restrictions after widespread smuggling undermined the effectiveness of the ban.

Implications for India's Tobacco Market

For India, one of the world's largest tobacco markets, the experience reinforces the importance of ensuring that taxation policies are accompanied by effective enforcement. Experts note that illicit tobacco products evade taxes, circumvent mandatory packaging and health-warning regulations, and are often sold at significantly lower prices than legal products, weakening both public health efforts and tax compliance.

Expert Commentary on Comprehensive Policy

Speaking on the issue, Dr Nandini Sharma, Ex Dean and Director Professor, Community Medicine, Maulana Azad Medical College, New Delhi said, "International evidence consistently shows that tobacco taxation remains one of the most effective public health measures to reduce consumption. However, taxation is most effective when accompanied by strong enforcement, supply-chain monitoring and coordinated action against illicit trade. A comprehensive policy framework should ensure that public health objectives are achieved without creating opportunities for illegal markets to expand."

Experts emphasise that tackling illicit trade requires sustained investment in intelligence-led enforcement, stronger border controls, effective track-and-trace systems and closer coordination among enforcement agencies.

Dr Meenakshi N. Family Physician, Public Health Expert, Apollo Hospital, Noida,said " The Maldives' experience demonstrates that tobacco taxation should be evidence-based and supported by effective enforcement. When illegal markets are allowed to flourish, they can undermine both public health goals and government revenues. The policy priority should therefore be to strengthen enforcement alongside taxation to ensure the intended objectives of tobacco-control measures are achieved. "

While each country's policy environment is unique, recent international experience underscores a common principle: taxation alone cannot achieve optimal tobacco-control outcomes. For India, sustaining progress will require a comprehensive approach that combines appropriate taxation with strong enforcement, regulatory compliance and decisive action against illicit trade. (ANI)

(Except for the headline, this story has not been edited by Asianetnews Editorial staff and is published from a syndicated feed.)