Punjab Govt Cracks Down on Tobacco Tax Evasion, Uncovers Goods Worth ₹1.5 Crore

Chandigarh, March 27, 2026: The Punjab government has intensified its action against tax evasion in the tobacco sector, with a statewide enforcement operation leading to the detection of unaccounted goods valued at around ₹1.5 crore. The crackdown was announced by Harpal Singh Cheema, who said the drive is part of a larger effort to ensure strict tax compliance.

According to officials, the operation was launched following intelligence inputs indicating a rise in tax evasion activities after recent revisions in tobacco tax rates. Acting on these inputs, enforcement teams carried out coordinated inspections across multiple locations in the state.

Specialized units from Amritsar, Ludhiana, Patiala, and Jalandhar were deployed to conduct simultaneous raids at eight sites, including both registered establishments and unregistered business premises operating outside the legal framework.

Authorities reported major findings in Ludhiana and Amritsar, where teams discovered concealed stockpiles in shops and storage facilities. Large quantities of tobacco products were found without proper invoices, indicating deliberate attempts to evade taxation.

The seized items included a wide range of tobacco products such as cigarette packs, biris, zarda, imported cigarettes, hookah-related materials, and accessories like lighters. Officials stated that the scale of recovery reflects an organized network involved in illegal trade practices.

Preliminary assessments suggest that the detected goods carry a tax liability exceeding ₹50 lakh, along with additional penalties under existing laws. The department has already recovered a portion of the amount and initiated further proceedings to recover the remaining dues.

Reaffirming the government’s strict stance, the minister emphasized that there will be no leniency towards tax evaders. He stated that similar enforcement actions will continue to ensure transparency and protect state revenue.

Traders have also been cautioned to maintain proper records and comply fully with taxation norms. Authorities warned that failure to adhere to legal provisions could result in stringent penalties and legal consequences.

The ongoing crackdown reflects the state’s broader commitment to curbing illegal trade practices and strengthening regulatory oversight across sectors.