22 September, 2008 - The tobacco black market is undoubtedly thriving, given the amount of contraband smuggled into the country from border towns.

But custom’s seizures are soaring too, with tobacco worth Nu 1.2 million confiscated to date. The latest being on Thursday, September 18, when custom officials seized tobacco products worth Nu 86,000 in Phuentsholing.

Alerted by their informers, they stripped a DCM truck bound for Thimphu and confiscated two cartons (50 packs each) of Wills cigarettes, four sacks of Baba (chewing tobacco) and two bundles of Bidi.

The shopkeeper, who hired the truck, and the driver, both denied that the goods belonged to them.

“I’d hired the vehicle and have no idea about the illegal tobacco”, said Tashi Dorji, who had purchased goods worth around Nu 300,00 from Jaigaon.

The driver, Ugyen Tenzin, said that some of the goods were loaded in Jaigaon and others at the FCB outlet. “Some Indian workers in Jaigaon had loaded few items in my truck which I had thought belonged to Tashi Dorji”, he said.

According to custom officials, a person is allowed to import a maximum of 200 sticks of cigarettes and 50 grams of chewing tobacco for personal consumption, subject to a 100 percent tax on the value.

Third country tobacco products are liable to an additional 100 percent import duty and any quantity beyond that is subject to confiscation. The confiscated items are usually destroyed in Pasakha, after seeking approval from the City.

According to the revenue and custom’s regional commissioner, Wangchuk Thaye, tobacco and tobacco products are the most common goods seized by DRC in recent times. Since the ban in December 2004, tobacco worth Nu 1.2 million have been seized and destroyed.

Despite vigilance and sudden raids from authorities, the tobacco black market is thriving in most of the dzongkhags. A city corporation engineer in Phuentsholing said that the huge profit margin encouraged the black market. “People are willing to pay any price for cigarettes,” he said.

Today, a packet of Wills costs anything from Nu 50 to Nu 150 and a packet of Baba between Nu 5 to Nu 10. Across the border in Jaigaon, a packet of Wills costs Nu 35 and and Baba Nu 3.