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Friday Sep 27, 2024
Thursday, 8 May 2014 00:00 - - {{hitsCtrl.values.hits}}
It is estimated that globally Governments lose US$ 40 billion in revenue from unpaid taxes due to the illegal cigarette trade. It is noteworthy to mention that this amount is sufficient to provide 75 kg of rice to every person in Africa.
In 2013, regulators and the law enforcement agencies in Sri Lanka prevented the illicit trade from robbing over a billion rupees through timely raids on illicit cigarettes being imported to the country. The cost is equivalent to commissioning 400 CTB buses, providing 1,250 new homes for war heroes or supplying 133 Ambulances equipped with advanced technology equipment. 
The illicit trade affects a wide range of livelihoods, industries and products. However, cigarettes are of significant appeal to smugglers owing to the ease of transport, selling and the ability to generate huge profits especially in Sri Lanka where cigarette prices are significantly high. An illicit product is anything that is duty-not-paid (white beedi/illicit whites), smuggled crossing national borders and not legitimately produced (counterfeit or fakes) that presents complex problems for the Government and the legitimate industry.
“No Government, regulatory body, law enforcement agency, or manufacturer acting alone can hope to eliminate the illicit trade in tobacco products. While there is no single solution available, it calls for all interested parties working together and sharing resources to curb this growing threat,” said CTC Country Security and AIT Manager Sanjaya Fernando.
The illicit trade is not a victimless crime. The uncontrolled and unaccountable environment created by illicit cigarettes makes tobacco more accessible for children, deprives the Government of revenue in the form of taxes and disrupts the livelihood of legitimate tobacco manufacturers and sellers. Additionally legitimate companies also face the loss of revenue and reputation due to presence of poor quality cheap products in the market.
However another matter for concern is the link between groups involved in the illicit trade of cigarettes with other organised crimes such as human trafficking, drugs and gold smuggling etc.
Sanjaya further said, “Stringent implementation of laws against the illicit white trade since the third quarter of 2013 has resulted in a significant decrease of such products in the market. As a responsible corporate, CTC is fully supportive towards fighting the black market. The illicit trade take away from Government, companies, employees and the society. Therefore, the general public too has a responsibility towards fighting organised crime. We request them to be aware of the significance of the illicit trade and report them the relevant authorities.”
A total number of 13 Million cigarette sticks have been confiscated from January to March 2014. Customs alone have been responsible for confiscating 98% of it.
