Pakistan is incurring heavy revenue loss of Rs 500 million and further more is expected in ongoing fiscal year, due to illegal trade of black tea under the disguise of Afghan Transit Trade (ATT). The government’s move to charge standard rate of sales tax on legal tea imports has brought a significant rise to smuggling of black varieties into Pakistan through ATT.
According to industry sources 39 per cent of the total tea consumption of the country, during last four months (July- October 2013), was smuggled through Afgan Transit Trade (ATT). From July-October 2013, Pakistan has imported 40 million kilograms through legal channel while 26 million kilogram of A-grade tea varieties worth Rs 1 billion has been smuggled through ATT.
