Punjab crackdown on tobacco tax evasion: Unaccounted goods worth ₹1.5 crore detected

File Photo: IANS


Punjab Finance, Planning, Excise and Taxation Minister Harpal Singh Cheema on Friday announced that the Taxation Department has launched a large-scale coordinated enforcement drive across the state to curb tobacco tax evasion leading to the detection of unaccounted goods estimated at ₹1.5 crore.

Sharing details of the operation, the Minister stated, “Following the recent increase in tax rates on tobacco products such as cigarettes, bidis, and allied items, the department received specific inputs regarding a surge in tax evasion activities in this sector. Acting swiftly on this intelligence, teams from four State Investigation and Preventive Units (SIPUs) based in Amritsar, Ludhiana, Patiala, and Jalandhar were mobilized. These units carried out simultaneous inspections at eight locations, including five registered business premises and three operating entirely without registration.”

Detailing the findings of the enforcement drive, the Minister said, “Major detections were made in Ludhiana and Amritsar, where enforcement teams made significant efforts to identify concealed storage locations and unaccounted stock. During thorough inspections of both main shops and associated godowns, substantial quantities of goods were found being stored and traded without valid invoices.”

He added that the seized stock includes approximately 1.32 lakh packs of Indian cigarettes, 18,472 packs of Indian bidis, 302 packs of zarda, 13 packets and 95 boxes of imported cigarettes, 148 pieces of foreign-made hookah material, 13,000 lighters, and 18 packs of Coolip.

Providing a financial assessment, the Minister stated, “A tax liability exceeding ₹50 lakh, along with applicable penalties, will be recovered from the detected goods as per the provisions of the law. An amount of ₹12 lakh has already been recovered, and further recovery proceedings are underway.”

Reaffirming the Bhagwant Mann Government’s zero-tolerance stance on tax evasion, the Minister said, “Such coordinated enforcement actions will continue unabated to ensure strict tax compliance and safeguard state revenue.” He also issued a stern advisory to traders, urging them to maintain proper documentation and strictly adhere to statutory provisions to avoid severe penal action.