Contraband tobacco bad for economy

 PAPUA New Guinea loses millions of kina annually from the booming illegal tobacco industry, British American Tobacco Papua New Guinea (BAT PNG) says.

BAT PNG said that a big amount in potential tax revenue is being lost by the PNG government, while businesses are losing big sales due the availability of cheap, smuggled tobacco products.

BAT PNG said it wanted to work with the government to combat this.

General manager Michael Penrose said: “Collaboration with the government is a way of defending PNG against the criminal cigarette trade.”  

Strengthening border control is an important area to focus on as criminals try to smuggle in cigarettes illegally imported from Indonesia and other parts of Asia. 

“If organised crime gangs from Asia continue to rob PNG of substantial amount in potential revenue, then mapping out a plan to reduce trading of illegal tobacco control is something we would like to do together with the government.”  

The import of the contraband makes it easier for young people to buy illegal cigarettes because they are sold for nearly half the price in some cases. 

“People operating legitimate local businesses are trying to make living selling legal cigarettes but other stores are selling cheaper illegal alternatives,” Penrose said.     

He added: “There is no better time to than the present to highlight how the tobacco industry could assist to stamp out a problem which impacts businesses, citizens and government