| Abstract: |
A new report suggests that in regions such as Africa, Eastern Europe and Latin American more than a quarter of total alcohol consumption is illicit, posing health risks and robbing governments of tax revenues. The new Euromonitor report – unveiled today at the National Press Club in Washington DC – suggests that more than 10m litres of illicit alcohol is being consumed each year in 24 countries in these areas of the world, leading to a collective loss of revenues of around $3.6bn a year and damaging the reputation of legitimate manufacturers. The illicit alcohol proportion in Latin America was 14.5 per cent, 27 per cent in Eastern Europe, and a massive 40 per cent in Africa.“Health risks are more prevalent in countries where illicit alcohol consumption is focused on artisanal beverages, counterfeit / unregistered brands, and surrogate products,” says the report. “ On the other hand, fiscal risks are higher in countries with a greater presence of tax leakage or smuggling.”Euromonitor says there are five main factors driving the illicit trade in alcohol, including low awareness of the risks, low prices driving demand, inadequate or onerous regulation that can encourage the market, a lack of enforcement, and poorly-regulated distribution channels. |
