Pakistan loses Rs.10 billion each year due to the illegal tea trade, which harms government revenue and public health. The country consumes over 200,000 tonnes of tea annually. Major brands like Tapal Tea and Lipton Pakistan lead the legal market, but an illegal market makes up 30% of the total tea trade.
High taxes on legally imported tea make smuggled tea more appealing to consumers. This illegal tea is often of poor quality and poses health risks. The illegal trade deprives the government of essential revenue and endangers public health.
To combat this issue, stricter import regulations are needed, including tighter border controls and harsher penalties for smugglers. Public awareness campaigns are crucial to educate consumers about the dangers of illegal tea and the benefits of legal, high-quality tea.
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These efforts could involve advertisements, social media outreach, and collaborations with health organizations.
Additionally, reducing taxes on tea and providing subsidies to local producers could make legal tea more affordable and attractive. By taking these steps, Pakistan can reduce the illegal tea trade, secure more revenue, and protect public health.
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