Call for stricter rules to protect public health

AS ILLICIT alcohol continues to deprive many governments of tax revenues and poses a significant threat to businesses and consumers, the Transnational Alliance to Combat Illicit Trade (Tracit) report has encouraged authorities to enforce strict laws and regulations governing the trade of ethanol to prevent its diversion for illegal and unauthorised purposes.

- MANYANE MANYANE [e-mail]

Tracit said this underground market harms the sales and profits of legitimate firms and the economy in general, while also posing major health and safety threats to consumers.

The report stated that to safeguard public health and reduce the risks associated with illicit alcohol, governments should enact and enforce laws and regulations governing the trade of ethanol to prevent its diversion for illegal or unauthorised purposes.

The most successful ethanol control strategies, according to Tracit, employ a three-pillar approach - encompassing the creation, implementation, and vigilant monitoring of ethanol control measures, which would disrupt illicit alcohol networks and protect public health.

This includes an ethanol control checklist, designed for use by legislators and regulatory agencies to implement or fortify ethanol control systems.

Ethanol constitutes a significant economic sector worldwide and holds a global market value of approximately $90 billion. It is used for many applications, including automotive transportation fuels, industrial applications, hand sanitizers, cosmetics, pharmaceuticals, and foodstuffs. It is also a major ingredient in the production of alcoholic beverages.

Because alcoholic beverages are heavily taxed, criminals make a profit by producing and selling low-cost, illicit products. One primary method for lowering costs is to secure untaxed suppliers of ethanol from unregulated imports, unregistered ethanol smuggled into the country, ethanol diverted from untaxed industrial applications, and ethanol produced locally in quantities sufficient for commercial sales.