Businesses should earn in profits and this is the primary reason for every entrepreneur to enter this sector. But then if the entrepreneur does not care for profit then he has to think of creating jobs or just be on the mission to leave behind a legacy. Only a business that goes on in a very proper manner or without evading taxes and duties can leave behind a legacy. The business, which produces items as per the listing on the government rulebook and which follows all the taxes and duties properly, is also going to be a company that earns a lot of goodwill amongst customers and competitors alike. Investors prefer to invest in such companies and even in those countries since they know there would be legal trade in it and this shall mean a lot of profit too.
Tobacco industry is a widespread industry and the consumption of tobacco is also international. There is a growth in the consumption of tobacco and though there are restrictions to consumption or sale of tobacco in a few countries, the consumption’s overall picture remains the same. The demand is high and the supply is also high. This also means that the governments of exporting countries have to keep an eye open for illegal trade not just locally but also internationally.
As per International Tax and Investment Center Tobacco is a valuable product and the quality of tobacco that goes out of the country should be of superior quality. This is what is called as export quality. Apart from packaging, the product should also be very rich with all the 7000 odd chemicals it has. But sadly, the companies do not comply to any of these when they intend to supply poor quality too and earn through the black market. Most of these black marketed items are surely not of any quality whatsoever and so they might not just cause ill health to the consumers but also create a bad reputation for the country. So indirectly, and directly illegal trade of tobacco and other such products affects the economy.
As per International Tax and Investment Center Tobacco is a product that should get as much care while packaging and distributing. There should be some strict laws and stricter fines and punishments on the offenders to start with. There should also be monitoring organizations that check for the quality of the products and only after they deem it fit for consumption shall they leave the shores.
Further, the companies should check the tab on price too and black markets should come down. The International Tax and Investment Center Tobacco section is working seriously on making the business very legitimate. The organization’s efforts are going a long way in urging the investors to invest and entrepreneurs to work in building better brands. All these methods shall improve the economy and the overall condition of a sector in a country. Ignoring such problems for the time being shall result in the loss of the sector as a whole.