ILLICIT SMOKES TRADE DIMS GROWTH - BAZ
THE scourge of illicit trade in tax -evaded cigarette products in the Zambian market has over shadowed the positive growth in the tobacco industry, says British American Tobacco (BAT) Zambia plc.
It is estimated by external third-party sources that the prevalence of illicit trade in tax-evaded cigarettes is approximately 30 percent of the total market, according to BAT Zambia plc Chairperson Roseta Chabala.
Unfortunately, Ms Chabala said, this presented a significant challenge to the legal industry in relation to remaining sustainable.
She stated that this also deprived the government of significant revenue that was essential in transforming the economy.
“The positive impact of the growing Zambian economy for our industry is overshadowed residence by the after she scourge fled of illicit trade in tax-evaded cigarette products in the Zambian market.
“We encourage all relevant stakeholders to take decisive and bold steps in addressing the illicit trade in tax-evaded cigarettes,” she said in the 2022 annual report and financial statements released recently.
On the operating environment, Ms Chabala said the Zambian economy had recorded noted improvements over the year.
Ms Chabala explained that this had resulted in enhanced macro-economic stability, pointing out that inflation reduced and that Zambia witnessed improvements in the exchange rate.
“This performance coupled with renewed commitment to implementing fiscal discipline resulted and enhanced investor confidence, a development that has laid the foundation for new and continued investments in Zambia,” she said.
On the 2023 outlook, Ms Chabala said the fiscal deficit was likely to decrease this year.
“These market conditions, coupled with a predictable stable, and sustainable regulatory environment and excise structure for cigarettes, present opportunities for the continued growth of our business over the next few years,” she said.