Gopee-Scoon: Over $90m loss in illegal imports in two years

Trade and Industry Minister Paula Gopee-Scoon speaks to the media at her ministry in Port of Spain on Wednesday. - SUREASH CHOLAI
Trade and Industry Minister Paula Gopee-Scoon speaks to the media at her ministry in Port of Spain on Wednesday. - SUREASH CHOLAI

Figures submitted to the Ministry of Trade and Industry estimate that losses due to tax evasion from illicit trade may be as high as $91 million for tobacco and alcohol alone for 2019 and 2020.

Minister of Trade and Industry Paula Gopee-Scoon referred to figures given to the ministry by the Chamber of Industry and Commerce and the West Indian Tobacco Company (Witco).

She said while the ministry has not been collecting data on losses incurred due to illicit trade, Witco gave an estimate of $30 million lost to tax evasion from illicit trade for tobacco in 2020. This includes excise duties, value added tax (VAT), corporate tax, and Green Fund tax, none of which would have been applied to illicit goods.

She said the TT Chamber of Industry and Commerce also gave an estimated figure of $61 million in losses due to illegal imports in 2019, and 22 per cent of all spirits entering the country being illegal. This, she said, was based on the input of major importers, including AS Bryden, AMCO and Massy Distribution.

“We have been receiving complaints from manufacturers for a very long time,” said Gopee-Scoon.

She said Cabinet approved a national action plan to combat illicit trade in consumer goods last week. The plan will extend to cover illegal trade in consumer goods in the first instance.

The action plan will be geared toward issues such as strengthening the capacity of ministries and enforcement agencies to combat illicit trade and increasing public awareness of illicit trade and the associated dangers, including health risks.

She said a task force will be implemented over the course of a year, beginning in May. Cabinet has approved the anti-illicit trade task force, which will comprise ten public-sector ministries/agencies, one governmental organisation and two private-sector organisations.

These organisations include the Intellectual Property Office in the Office of the Attorney General and Legal Affairs, the Ministry of National Security, Crime Stoppers TT, and the TT Manufacturers’ Association.

Gopee-Scoon also referred to a global illicit trade environment index created by the Transnational Alliance to Combat Illicit Trade (TRACIT) in 2018, in which TT ranked 75th out of 84 economies.

“We have to improve our standing on this index,” she said, adding illicit trade is undermining manufacturers’ efforts, including their intellectual property rights and trademarks.

She said the number of tobacco products on the shelves do not all satisfy the Tobacco Act.

“Some packages are in different languages.”

She said the ministry asked the Bureau of Standards (TTBS) to test soaps and detergents being sold on the roadside.

“At the centre of it all is the life of consumers (and) ensuring products do not have a detrimental effect.”

She said the task force will also ensure consumers’ safety.

She also said over-the-counter products in pharmacies are also an issue, especially in smaller pharmacies, as it is not always clear if those drugs have been approved by the Chemistry, Food and Drugs Division of the Ministry of Health.

She said the task force will also review existing legislation to ensure illicit trade activities are properly defined and addressed.

The current tax regimes of products susceptible to illicit trade will also be reviewed.

Gopee-Scoon said while examining and passing legislation would not fit into the Attorney General’s plans for this year, draft legislation will be reviewed for establishing special economic zones, with specific focus on illicit trade.

Lack of data collection on illicit trade will also be addressed.

“The availability of information about the trends, practices, and actors conducting illicit trade will be critical for the formulation of effective e-governance responses.”

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"Gopee-Scoon: Over $90m loss in illegal imports in two years"

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