Recently, the fourth edition of the Global Illicit trade summit was held here in Addis ababa. The Summit was organized by The Economist and discussed the better solution for averting illicit trade regionally and internationally.
Illegal trade has debauched impacts on political and social-economic aspects of the country. The expansions of illicit traders have an adverse effect on tax collection. Hence, the government which relays on tax will face difficulty to allocate budget and addresses the quests of growing unemployed youth.
On the occasion, Debele Kebet, Ethiopian Customs Commission Commissioner discussed the impact of illicit trade in Ethiopia “The larger part of the country border encompasses extensive lowland areas which cannot be controlled by customs and federal police.
“As a result, smugglers can easily access and cross with a substantial amount of smuggled goods. Millions of Birr worth illegal goods enter and leave the country annually via our border” he said.
Hence, it was noted on the occasion that the summit would create an opportunity for all national and international stakeholders including researchers in raising awareness and creating integrity between them to combat illicit trade.
Ashenafi Bassa, Commission’s Customs Compliance Division Head on the sideline of the summit told The Ethiopian Herald that the summit is very vital for raising awareness on illegal trade and ensure legal import and export trade.
Above all, the worst part of illicit trade is smuggling of medicines, cosmetics, other consumers’ goods which directly or indirectly connected with the daily life of the public and that may lead social crises.
To alleviate the problems related to illegal trade, the commission has been working in collaboration with concerned authorities.
During the panel, Kudzai Madziivanyika, business policy, and programs manager at COMESA Business Council deliberated on the cost and drivers of illicit trade in the COMESA region. She further talked about the measures taken by COMESA in order to avert illicit trade.
Fady Rahme Corporate Development Vice president for the Middle East, Africa, and Worldwide Duty for Japan Tobacco International explains that illegal tobacco products have an enormous problem of global scope. In Ethiopia, 40 percent of the total tobacco products are illegal.
South Africa’s illegal trade accounts for 33 percent of the total maker and is as high 43 percent in the non-organized trade, resulting in eight billion lost taxes annually, according to a recent study by lpsos. Not only does illegal tobacco rob government of tax revenues, but it is also linked to much larger organized crime for instance corruption, the trafficking of weapons, narcotics and peoples and terrorist, he said.
Speaking on the solution to fight illicit trade, Fady added that “the illegal trade can only be curbed if the governments and industry work together.
We support police and customs authorities globally in their efforts against illegal tobacco, but we cannot do it alone. Strict enforcement of anti-illegal tobacco laws is needed, as well as stiff penalties for criminals. Tobacco control and fiscal measure should be proportionate so they do not undermine the fight against illegal tobacco.
Debele also reiterated on the need for cooperation in combatting illicit trade saying “the responsibility to fight against illicit trade should not solely be left to the federal polices and the customs. All stakeholders such as law enforcement bodies, local and regional organizations, international organizations, private sectors, and the community should be active players in combating illicit trade.”
The Ethiopian Herald July 4/2019
BYMULATU BELACHEW
