Some 60 per cent of cigarettes consumed in the country are contraband, equal to as many as 1,000 illicit cigarettes sold every minute.
Not only is the government’s financial goals undermined, but the criminal groups stand to benefit the most. They move into the profit space the tax has created. International and organised crime groups are quick to realise easy profits when they see a highly taxed product combined with low enforcement.
The criminal syndicates that reap huge profits do not only corrupt the supply chain but also channel their ill-gotten revenues back into supporting other forms of criminal activities.
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