200 million bags of fake chewing tobacco threaten Algerians to cancer

Figures from the national tobacco corporation show that chewing tobacco so-called “chemma” informal market is estimated at 200 million illegal bags of it.

• Taxes on “chemma” consist in interior consumption tax estimated at 15 Algerian dianrs per bag and 6 DA per bag as added tax as well as value added tax estimated at17 percent of one bag.
• Marketing 200 million begs of chemma in black market is considered as a tax evasion. That represents losses public treasury undergoes.
• National consumption of “chemma” is between 600 and 700 million bags per year.  The national tobacco corporation used to manufacture this amount before 2000. Since then, its sales have gone down due to the increasing informal market. Now, the venture sales 370 million bags per year and the rest of the market is dominated by illegal workshops in different provinces in Algeria.
• A member of the administration board of Algeria’s tobacco company Said Khalef told Echorouk that the chewing tobacco which is illegally sold had been analysed. “Tests showed that this chemma causes cancer.”
• According to him, the chewing tobacco contains marble and lime powder and is packed in small bags with labels.
• The spread of those illegal workshops is due to its easy and simple manufacturing. “Many families make them at home as livelihoods while others manufacture it in small workshops without paying any taxes.”
• The national corporation signs contracts with tobacco producer farmers in different provinces in Algeria to not sale their products to any other person except public companies. However, tobacco manufacturers do not respect this contract and sell a part of their production in the informal market.