KARACHI:
Earlier the Pakistan Tobacco Company (PTC) expressed concern over the new taxes on cigarettes as this could lead to an increase in smuggling and supply of counterfeit products in the market. Currently, the illegal tobacco trade is causing Rs80 billion loss to the economy annually. It is also posing a serious threat to public health.
A recent survey revealed that the illicit tobacco trade has been thriving in Pakistan due to the availability of cheap and smuggled tobacco products. This trade not only robs the government of valuable tax revenue but also promotes the use of illegal and substandard products, which can lead to serious health issues among consumers. Many of the smuggled brands do not have health warnings.
According to the PTC officials, local companies pay only Rs3 billion in taxes and duties. The government must take immediate action to address the revenue losses and either bring the companies under the tax net or take strict action against the illegal tobacco trade and crack down on illegal manufacturers. It should ensure that FBR’s track and trace system that monitors the production and supply of cigarettes is strictly implemented. The government must also raise awareness among the public about the dangers of using such products and encourage them to opt for legally manufactured tobacco products.
Usama Ghulam
Karachi
Published in The Express Tribune, April 12th, 2023.
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