Pakistan is losing a substantial amount of money due to the illegal tea trade, with estimates suggesting a significant annual loss in duties and taxes.

The illegal tea trade not only results in financial losses but also poses health risks to consumers, as smuggled tea is often adulterated with harmful substances.

The high taxes and tariffs on legally imported tea make smuggled tea more attractive to consumers, particularly those with lower incomes.

The price difference between legal and illegal tea incentivizes consumers to opt for the latter, stretching their limited budgets. However, this comes at a cost, as smuggled tea often contains harmful additives.

The growing illicit tea market, which constitutes a significant portion of the total tea market in Pakistan, is a concern.

The country’s persistently high inflation rate exacerbates the issue, reducing consumer purchasing power and driving them to seek cheaper alternatives in the black market.

To address this issue, stricter enforcement of import regulations, public awareness campaigns, and efforts to make legally imported tea more affordable are necessary.

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