Within its anti-smuggling campaign that was launched early this year; the RLTT announced today, Friday, that the sum if fines, which were imposed reached 15 Billion LBP.
The RLTT’s statement declared that the anti-smuggling bureau conducted several raids across the country, where hundreds of reports were filed against violators and huge quantities of smuggled tobacco products were seized. As well, the sum of reconciliation of fines reached 800 Million LBP.
The statement clarified that reports were referred to the relevant authorities in order to take relevant legal steps, as well as to the Directorate of General Customs in respect to an agreement signed between that later and the RLTT.
yle="text-align: justify;">
Beirut Declaration
The parties published a statement entitled “
Beirut Declaration”, whereas they stressed the “need for modern and moderate legislations that take into consideration tobacco production, import processes, and the sector’s financial contribution in the national economy through tax revenues, which is an important factor for the national reserve’s sustainability, as well as the employment opportunities it provides.
In addition, the attendees warned of “the potential and reversed impacts that could arise from tobacco illicit trade, including counterfeit and smuggling that in turn could participate in supporting terrorism”. As well, they reminded that “tobacco production and trade had took a significant role in developing the economy in several countries”, including theirs, along “its capability to continue playing such role”.
The parties considered that “tobacco farming contributes in developing agricultural communities, reducing poverty levels, and keeping farmers in their lands”, since it constitute a “legal and authorized activity that does not implicate any condemnation, exclusion, nor restriction of support comparing with other types of agriculture.”
As well, they warned of “the negative consequences in case of excluding tobacco sector from trade agreements and international investment”, considering that “excluding any sector from trade agreements and international investment would never lead to its wished results. Contrarily, it would create a negative precedent of dropping different products and sectors from trade agreements.”
They stressed that “imposing more restrictions over the trade of legal tobacco products would give pretenses for illicit trade, which would lead in turn to a huge decrease of customs and tax rates that are currently collected from legal trade.”
SEKLAOUI
The meeting was initiated by a speech of the Regie’s President and General Manager Mr. Nassif Seklaoui; in which he declared that the Regie had been seeking to build “success and distinction” and to become the “most distinguished and successful public facility, especially that it celebrates its 80th anniversary this year”. He added: “our establishment went beyond its monotonous job, through activities on different levels, such commercial, industrial, financial, and administrative. As well, it played a major national role in resisting the occupation through providing economic support in the regions that were under the Israeli occupation.”
Seklaoui admitted that “the future of tobacco sector is by no mean easy” since it constitutes “a harmful product”, adding: “we are running monopolies that yield gold for our national reserves, since its huge revenues go to the government’s benefit and neither to a company’s nor an individual’s.”
Seklaoui mentioned “the reclaims and pressures that aim to restrain the sector in order to dissolve it, under the noble pretext of saving people’s life”. Thus, he called “to redirect the compass toward reconstructing facts according to objective conditions” in each and every country, respecting its special circumstances.”
He added: “the similarity between our nation companies in Egypt, Syria, Tunisia, and Lebanon, where the government monopolizes tobacco activities, encourages us to work harder in order to emphasize our common factors in order to create a space of economic and informatics cooperation, including the exchange of expertise.”
He underlined that “the principal of monopoly gave high results in the majority of countries in which it was applied”, adding: “the majority of tobacco monopolies were cancelled and few are left”. “The experience had proven that cancelling the monopoly was not a wise decision; whereas small and uncontrollable companies were established, which led to the increase of smuggling, to the chaos in the market, and to a major decrease in the tobacco sector’s revenues.”
Seklaoui added: “for these reasons, an important responsibility lays on our shoulders, which is that of proving to our governments the advantage of keeping this sector. Thus, we shall unify the stands of our countries considering different topics that encounter this sector.” As well he considered that “each decision that does not take into consideration the distinction of every country is deemed failed or at least it would damage countries that would adopt it.” He stressed that “the best ways of fighting smoking, in addition to raising awareness, is increasing prices or increasing taxes, which in principle does not harm the government’s revenues, rather, it increase them. However, such proposal in a country where its boundaries are open and uncontrolled would lead definitely to decreasing the government’s revenues and increasing the profits of smuggling networks.”
Seklaoui stressed: “in agricultural societies such Lebanon, what would be the impact of retraining the support of agriculture or ending the agriculture without providing any of the proposed alternatives? What is the solution if some governments are not capable to provide alternatives? Do we send tens of thousands to the unknown?”
Seklaoui concluded: “thus, we shall set a vision to propose for our governments in order to adopt a national clear stand, and the present meeting is a real chance to study the possibility of cooperation on different levels.”
Tunisia, Egypt, and Syria
In turn the representative of Tunisia, Imad Atiah, spoke about tobacco sector in his country, indicating that its revenues are estimated to reach 12% of the national budget. As well he mentioned “some ambitious investment programs concerning the rehabilitation of production units in order to provide the Tunisian market’s needs.”
As per the situation of the sector in Egypt, Nasr Abdel Aziz Abdel Rahman said that “around 240 billion Egyptian pound are yield to the government from different tobacco related taxes”, pointing that “tobacco sector is one the sectors that contribute the most to the reserve after the Suez Canal”. He stressed the importance of “facing smuggling operations whose revenues contribute in financing terrorist attacks in different parts of Arab World”.
As well, the representative of Syria Nader Abdallah spoke about the tobacco facility in Syria which “is one of the primary sectors that support national economy and general reserve”, pointing that the sector includes 16,000 workers whereas 4,000 are seasonal, and around 60,000 farmers.
The absence of tobacco revenue increase the deficit
A video was played in order to demonstrate the Regie’s experience, activities, and accomplishments, after which the economic expert Dr. Marwan Eskandar spoke about the impact and role of tobacco monopolies and the main challenges that face such facilities.
Eskandar underlined the importance of national tobacco companies’ role in controlling smuggling operations and encountering them, and fixing national prices and requiring sellers to respect them. He stressed that smuggling prevails in countries that lack corps responsible for investigating smuggling or imposing pricing set by the government.
As well, he described national tobacco monopoly companies as being an important instrument to impose prices and ensuring the usage mode.
Moreover, he underlined that 7.5% of the Lebanese government’s revenues become from taxes and duties over tobacco. Thus, whenever these incomes shall be lost, the deficit shall increase by around 7 points. A situation which Lebanon cannot handle, especially that it is about to witness an increase of wages.
He warned that any increase of tobacco prices is in a position to enhance smuggling, which would lead in turn to preventing the government from incomes, without limiting smoking among people since they would still be smoking anyway.
Workshop
Later, a workshop was held under the title “International Context: Key Challenges of Tobacco Sector” and presided by the President of IFBF Mrs. Lamiaa Al-Moubayed Bsat.