The Trinidad and Tobago Manufacturers Association suggest it is critical for all regulatory, law enforcement and government agencies to continue to work together to for consistent enforcement via strengthen border security, share resources and promote information sharing to dismantle criminal networks.
It says the illicit trade is a multi-faceted phenomenon and addressing it requires a cohesive and collaborative approach on all fronts.
TTMA warns tax evasion is a major component of illicit trade which primarily affects sectors such as the tobacco and alcohol industries.
Given the taxes associated with these high-value commodities, underground economies thrive on depriving the Government of the revenue intended to be generated on its import or export.
Perpetrators of the act engage in practices such as underreporting income, bribery and misrepresenting expenses which attracts lower taxes.
Investments in social welfare, infrastructural development and public services are then impacted as the crime undermines their ability to collect the required income necessary to provide such services.
Tax evasion also disrupts the playing field for legitimate manufacturers, distributors and businesses, as illicit traders erode their competitiveness by underpricing competing products.