IndiaPosted at: Jan 18 2026 6:18PM


Retailers, trade bodies warn of surge in illicit cigarette trade ahead of Feb 2026 tax hike

New Delhi, Jan 18 (UNI) Indian small retailers’ concerns about losing sales to illicit goods, in anticipation of a steep increase in taxes on cigarettes effective February 1, 2026, are supported by the Swadeshi Jagran Manch (SJM), an Indian economic and cultural organisation affiliated with the Rashtriya Swayamsevak Sangh (RSS).
SJM cautioned against the rising influx of smuggled foreign cigarettes into Bharat, as illicit trade is expanding through multiple channels and posing risks to domestic livelihoods, even as retailers’ bodies and the Indian Sellers Collective warned of a wider impact on livelihoods and the country’s vast retail chain.
Agreeing with the concerns of the small retailers, Dr. Ashwani Mahajan, National Co-Convener of the Swadeshi Jagran Manch, said, “High taxes on sin goods have historically led to expansion of the black market, with smuggled products — often benefiting foreign producers — filling the gap created by unaffordable legal prices. Policymakers should consider ground realities and avoid creating conditions where smuggling becomes the only alternative, undermining domestic producers and honest retailers.”
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Tags: #Retailers# trade bodies warn of surge in illicit cigarette trade ahead of Feb 2026 tax hike
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