TTMA: Illicit trade continues to challenge businesses

Businesses are challenged by a wide range of illegal activities such as smuggling, counterfeiting, piracy, tax evasion, organised crime and human and drug trafficking.

This according to the Trinidad and Tobago Manufacturers Association (TTMA).

In a release, the association said TT continues to be used strategically by organised crime networks to facilitate the smuggling of commodities destined for external markets.

The effects of illicit trade are numerous, including loss of revenue to the government, the provision of sub-standard goods, and the erosion of legitimate businesses.

TTMA said over a two-year period, $6.4 million in cigarette sticks; 3,264 extension cords; 1,432 power strips; 1,390 LED lights; 363 Christmas lights; 790 assorted electrical appliances; 1,983 phone adapters and 837 glue guns were seized.

Additionally, law enforcement authorities sized 5,937 pharmaceuticals which were to be sold only in pharmacies but found on the shelves of retailers.

TTMA said from a business standpoint, this is quite concerning as illicit networks evade law enforcement, infiltrate the system, put citizens at risk due to unregulated products, contribute to crime and deprive the government from tax collection.

Tax evasion continues to be a major component of illicit trade, primarily affecting the tobacco and alcohol industries.

Given the taxes associated with these high-value commodities, underground economies thrive on depriving the government of the revenue intended to be generated on its import or export.

Tax evasion also disrupts the playing field for legitimate manufacturers, distributors and businesses, as illicit traders erode their competitiveness by underpricing competing products, the release said.

TTMA said it recognises the adversities associated with illicit trade and supports the initiatives geared towards eradicating these activities.

In 2018 the organisation formed the Illicit Trade Desk as part of its thrust to increase awareness and reduce instances of illicit trade activities in TT.