ISLAMABAD: Pakistan is losing billions annually due to illicit cigarette trade as it has reached 54 percent in the country, a report of IPOR said.
The Institute of Public Opinion Research has released its survey report on sales of illicit cigarettes in the country. The survey on the current status of the track and trace system in the cigarette industry was conducted in 19 districts of the country. A total of 413 cigarette brands were identified in the survey.
According to the survey report, 413 cigarette brands were not present in the records of the Federal Board of Revenue. Out of 413 cigarette brands, only 19 cigarette brands were found to have track and trace tax stamps while only 95 cigarette brands were found to have pictorial and written health warnings approved by the Government of Pakistan.
The report said that 286 cigarette brands were neither have approved health warnings nor track and trace system.
Pakistan had implemented the law on pictorial health warnings on cigarette packets in 2009. Similarly, track and trace system was implemented in the cigarette industry in 2021. The aim of implementing the track and trace system was to stop tax evasion in the cigarette industry. But even after 16 years, cigarette packets are being sold without the government of Pakistan’s approved health warning.
The reporter further added that 54 percent of illegal cigarettes are being sold without the track and trace tax stamp.
332 cigarette brands revealed to be sold at less than the minimum price of Rs 162.25 set by the government of Pakistan.