KARACHI:
FBR has been intensifying efforts to crack down on the illicit cigarette trade by targeting small retailers, wholesalers and kiosks. These actions are commendable, but they don’t consider the manufacturers who actually evade taxes.
Experts have long called for action against the manufacturers of smuggled and tax-evading cigarette brands. These illegal operations cost Pakistan’s economy billions of rupees each year. According to a recent report, the illegal cigarette trade results in an annual loss of 310 billion rupees to Pakistan’s exchequer in unpaid taxes. While cracking down on retailers helps curb the spread of these illegal cigarettes, the real damage stems from manufacturers who evade excise duties at the tobacco processing stage. By focusing on these manufacturers, FBR could make significant progress in combating illicit trade. Additionally, implementing a track-and-trace system could further reduce the financial losses incurred by the state. This issue not only affects the economy but also exacerbates the health risks associated with smoking. The sale of untaxed cigarettes makes it harder to control tobacco consumption and its harmful effects on public health.
It is recommended that FBR must expand its efforts beyond small vendors and tackle the manufacturers responsible for illegal trade. This would help recover billions of rupees in lost revenue and mitigate the health and economic damage caused by this pervasive issue.
Usama Ghulam Rasool
Karachi
