LAHORE: Terming the health risks associated with the illicit and sub-standard tea, health professionals said that smuggled tea often undergoes adulteration with harmful substances such as dyes, sawdust and even pigeon blood.
These unsafe practices in the informal sector pose significant health hazards to consumers, who may be unaware of the contamination in the tea they purchase, they said, adding: “There is surge in stomach related diseases due to the use of sub-standard tea.”
High taxes and tariffs on legally imported tea make smuggled tea a more attractive option, especially for lower-income groups. The price difference between legal and illegal tea becomes a strong incentive for consumers to opt for the latter, seeking to stretch their limited budgets.
The smuggled tea is available in the market at lower prices, making it difficult for legally imported tea to compete. This not only undermines legitimate businesses but also deprives the government of crucial revenue needed for public services and infrastructure development.
It may be added that Pakistan is one of the largest tea consuming countries globally, with an annual consumption exceeding 200,000 tons. The legal tea industry in the country, with a market share of 70%, includes two major players among others.
As per market sources, the growing illicit tea market, now constituting around 30% of the total tea market in Pakistan, which is a big concern and it results in significant economic losses as the country faces an annual revenue loss of approximately Rs10 billion due to the avoidance of import duties and taxes.
“The growing trend of the illicit tea trade in Pakistan calls for urgent measures from both the government and the public,” said Osama Siddiqui, a macroeconomic analyst, adding: “Addressing the economic impact and mitigating health risks requires a multi-faceted approach, including stricter enforcement of import regulations, public awareness drive about the health hazards of smuggled tea.” He said, “The annual revenue loss of Rs10 billion is a stark reminder of the financial toll. By addressing the root causes of this trade and promoting safer, legal alternatives, Pakistan can work towards a healthier and more prosperous future.”
Copyright Business Recorder, 2024
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