ISLAMABAD: An alarming increase in the sale of illegal cigarettes has been revealed in the country, with the market share of illegal cigarettes reaching 42.4 percent.
This was revealed in a report on illegal cigarette trade in Pakistan. The report was prepared by think tank FFO, which conducted a survey last month on illegal cigarettes in four districts of Punjab.
The report states that after 2019, illegal cigarette trade increased by 171 percent, illegal cigarette market share was 15.66 percent in 2019.
In the report, used cigarette packets were observed in Lahore, Kasur, Sheikhupura, Nankana, 42.4% cigarettes used in four districts were found to be illegal, 42.4% cigarettes available in the market are smuggled, non-duty paid, illegal cigarettes used. The reason is the significant increase in FED.
According to the report, the increase in federal excise duty on tobacco has had negative effects, the increase in FED has increased the market share of illegal cigarettes, the increase in FED has reduced the tax collection from tobacco companies, the government has stopped the market of illegal cigarettes. I have failed.
In the survey report, it has been said that currently the domestic market has become a paradise for cigarette smugglers and tax evaders and billions of rupees of tax is being stolen annually in the name of illegal cigarettes. .
The report further states that the rate of consumption of illegal cigarettes is very alarming, implementation of track and trace system is imperative to eradicate illegal cigarettes, smuggled cigarettes are easily available in the market of Punjab. Ministry of Finance, FBR take note of the market share of illegal cigarettes.
