Attempts To Subside Black Market And Enhance Gray Market
Tax is the most familiar word to every individual in any part of the globe. It is also one of the most common aspects of law among every country. What is tax then? Tax is a fee levied by government over products, properties, income and so on. The amount collected in the form of tax serves as a resource for government officials, and in the development of public needs like roads, parks, public libraries and others.
Not paying tax means a misbalance in the economical global market. Yet many individuals, companies and other entities purposely fail to pay tax. They not only break the law but also make civilization tougher. However, there are many companies, which portray sincerity and responsibility by disbursing tax, legally establishing itself on firm grounds. International Tax and Investment Centre Tobacco is one such example, promoting tax reforms and strengthening grounds of investment.
Tobacco product is one such product, widely produced and extensively consumed. The tobacco products may include forms of cigar, smoking tobacco, chewing tobacco, snuff and any other other product made of at least 50% of tobacco. Tax on tobacco is usually upon the distributor who sells, distributes or consumes tobacco products.
Since its demand keeps increasing, wrongdoers misuse the opportunity by producing and selling fake or cheap quality tobacco items. This black marketing of tobacco is harmful not only for the economic growth but also for the consumers. The black market is an illegal market where distribution of commodities without following legal rules occurs; avoiding taxes and thereby creates havoc in the gray market, which has more legal approach. Plain packaging could be a major reason behind easy smuggling and selling of tobacco products.
Cheap tobacco makes it easy for kids to buy, consume and get addicted to it. Black marketing is indeed a spoiler and the smugglers care for none whatsoever. The wrongdoers do not really feel threatened by the penalties they might have to face. One way to stop this would be to educate the consumers of the dangerous effects of buying and consuming cheap quality of tobacco products.
However, companies do care for their own business and for the stability of products in the market. Companies should keep track of their products through supply chain, digital coding helps to ensure the taxes paid on the products. Internal governance of the company is also necessary. Companies keep the record of the availability of their certified products in every market of the country they deal with. They also make sure to follow all rules set by the government.
International Tax and Investment Centre Tobacco founded by multinational corporations has made petition against the illegitimate trade of tobacco and its various by products. They have always followed the permissible path of marketing the products, taken steps to avoid smuggling, and raised awareness among the employees, trading partners and the common customers. Advanced technology has also played prominent role in hindering smuggling, with the use of digital coding, track and trace technology. Use of all implementations accurately would someday put an end to illicit distribution of tobacco.