– claims hike in tobacco taxes will amplify illicit trade By: Jeanna PearsonKey stakeholder in the tobacco trade, Demerara Tobacco Ltd. claims they were excluded from the consultation process for the drafting of the new tobacco legislation, which is expected to be tabled early next year.In an interview with the Kaieteur News, Managing Director Maurlain Argyle-Kirton said it was disturbing that the Company was not included in the consultations.“Unfortunately and disturbingly, Demerara Tobacco has not been consulted despite many consultations on the Bill over the years,” she stated, stressing that the Company has not laid eyes on the content of the Bill as yet.She asserted that despite many attempts to have engagement with the Public Health Ministry, no one sought to meet them.She questioned why a legislation, that is so important to Guyana’s economy and public health, should be managed so “confidentially.” The last time the Company tried to gain an audience with the Minister was last month, she said.The tobacco legislation is intended to protect present and future generations from the “devastating harms” of tobacco use, exposure to tobacco smoke, and specifically to prevent tobacco use among youths. The legislation would also seek to ensure that the public is protected from the commercial and other vested interests of the tobacco industry, while preventing the illicit trade in tobacco products.But Argyle-Kirton suggested that a hike in tobacco taxation would lead to an increase in the illicit trade in tobacco products.She said Suriname is a bona fide example of a rise in the illicit trade following an increase in taxation.“They woke up one morning to increase the taxes, driven by PAHO to raise it by 75 percent of the retail price and today illicit trade is 40 percent and growing,” she stated.PAHO, on the other hand, in a statement had argued that the tobacco industry and criminal groups are among those who profit from this illegal trade and thus urged its member countries to ratify the Protocol to Eliminate the Illicit Trade in Tobacco Products.Managing DirectorMaurlain Argyle-KirtonCorporate Affairs Director of British American Tobacco Caribbean and Central America Eduardo CastanedaThe Protocol would help to smother this trade through a range of measures relating to the tobacco supply chain, including the licensing of imports/exports and manufacture of tobacco products,Air Max 97 Undefeated Uk, the establishment of tracking and tracing systems and the imposition of penal sanctions on those responsible for illicit trade. It would also criminalise illicit manufacturing and cross-border smuggling of tobacco products.PAHO stated that although the tobacco industry publicly shows itself as a partner in the fight against illicit tobacco, the industry’s underground behavior revealed something else. PAHO indicated that internal documents released as a result of court cases demonstrate that the industry has actively encouraged illicit trade internationally, working? to block execution of tobacco control measures such as tax increases by arguing that these will fuel the illicit trade.Argyle-Kirton, however, stated that the government needs to understand how to manage the issue, considering both their revenue and the public’s health.Corporate Affairs Director of British American Tobacco Caribbean and Central America Eduardo Castaneda posited that it is important for Guyana to have a regulation that is balanced and enforceable with its resources available. “Why have regulations when you can’t enforce them?” he asked.He stated that any increase in cigarette taxation be transferred into pricing for the consumers, and if pricing is raised then smoking will inevitably swell out of control. “The consumer will continue to look for what he/she considers is a cheap brand and a cheap brand is more than likely smuggled. Once that starts to happen, we would have a whole new dimension in the economy. And the government loses revenue from legit companies because everything goes underground,” he said, adding that the situation does not appear to bode well for the government.He explained there was a raise in tobacco taxation in Panama and the country suffered a boom in the illicit trade. “The increase caused 75% of the Panamanian market to have smuggled tobacco,” he said,Cheap Jerseys, reiterating that the domino effect of the underground trade does not reduce consumption.Citing that Brazil has a 35% increase in its illicit trade because of the growing taxation, Castaneda alleged that all of these countries with increased taxation were targeted by different organizations, like the Pan American Health Organization (PAHO),NFL Jerseys Wholesale, to increase excises.Regional Advisor on Tobacco Control at PAHO, Dr. Adrianna Blanco had indicated that the government needs to i