Experts call for punitive laws to deter illicit tobacco trade

The growing illegal tobacco trade in Africa has raised concern among sector players, with experts urging governments on the continent to draft stronger policies to deter the vice. Experts say illegal tobacco trade is on the rise in Africa compared to other continents, cautioning that the illegal business could more than double by 2025 if nothing is done to check it. Grieve Chelwa from the Economics of Tobacco Control project at University of Cape Town in South Africa, urged governments to work with industry players if they are to eliminate illegal tobacco cartels. Speaking during the fifth consultative policy institutes committee meeting in Kigali recently, experts blamed the rise on weak institutions, corruption and lack of political will to streamline the tobacco industry on the continent. “The lack of co-operation among stakeholders and governments, as well as weak tax administration and enforcement have created loopholes that are being taken advantage of by unscrupulous dealers to trade tobacco illegally on the continent,” Chelwa told The New Times. Chelwa told the meeting organised by the African Capacity Building Foundation and the Institute of Policy Analysis and Research-Rwanda (IPAR-Rwanda) that the unchecked illicit trade poses a serious danger to the public. The meeting brought together experts and economists from 20 African countries, including South Africa, Botswana, Burkina Faso, Cameroon, Ethiopia, Ghana, Swaziland, Mali, Uganda, Tanzania, Kenya, Burundi and hosts Rwanda. Speaking at the event, Eugenia Kayitesi, the IPAR-Rwanda executive director, called on African governments to engage stakeholders on strategic and policy issues to help in the formulation of stronger laws to fight illicit trade on the continent. “We need to find effective ways that will help in anti-illicit tobacco trade policy design and implementation on the continent,” Kayitesi said. Increasing taxes on tobacco products Meanwhile, the experts called for the increase of taxes on tobacco products to help solve the problem. They argued that if governments increased exercise and customs duties on tobacco leaf imports and exports, as well as raised awareness among the public on the dangers of tobacco consumption, this could reduce traded volumes. Chelwa said strong tobacco tax legislation would also be an important tool to reduce illicit tobacco trade. The Rwandan government expects to collect over Rwf5 billion from increased tobacco levy this year. However, according to Mamadou Bamba Sagna, a Senegalese tobacco control expert, illicit trade in tobacco is a tax issue. “The high taxes on tobacco products could be forcing traders to always look for alternative ways, including dodging taxes,” Sagna said. “We should therefore try and formulate collaborative partnerships to support the implementation of tobacco control policies across the region and on the continent generally,” Diawara Barassou, an economist at the Zimbabwe Institute of Policy Analysis and Research, said. Anne Rwigarira, the managing director of Rwanda Premier Tobacco, said increasing awareness and proper product packaging and branding is the best way to streamline the business. According to World Health Organisation statistics 2014, more than six million people die every year from smoking-related illnesses. business@newtimes.co.rw

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Experts call for punitive laws to deter illicit tobacco trade