Illegal cigarette sales surge in south Punjab

PTC says tax-evaded, smuggled cigarettes being sold openly

ISLAMABAD:

Pakistan Tobacco Company (PTC), while sharing latest market trends, has said that the sale of illicit (smuggled, tax-evaded and counterfeit) cigarettes has increased to around 60% in south Punjab, causing a loss of billions of rupees to the national exchequer.

Talking to media persons, PTC Business Development Analyst Mohsin Ali mentioned that south Punjab had been affected the most by tax-evaded and smuggled cigarette brands, which were being openly sold at retail outlets. After successive increases in excise duty, consumers have moved to cheaper, tax-evaded and smuggled cigarette options, which are illegal. The irony is that these cigarette brands are openly sold in the market as enforcement has not been able to create the desired level of deterrence.

A market survey of different areas in Multan clearly highlighted the growing trend of illicit cigarettes and how laws were being openly flouted. It is important to note that the government of Pakistan has set the minimum price of a pack of cigarettes at Rs127.44, which is not being enforced in true letter and spirit. A majority of cigarette brands are being sold at prices ranging from Rs80 to Rs130. It was also observed that a majority of the cigarettes being sold were without track and trace stamps. Smuggled cigarettes of various brands were also available, which were being sold without the graphical health warning.

“Illicit cigarette manufacturers are openly flouting rules and regulations through free cigarette packs and reward schemes among other activities,” said the PTC analyst. In order to curb the growing trend of illicit cigarettes, the PTC official emphasised, the government must sensitise its law enforcement agencies against the organised crime network and take strict action.

Published in The Express Tribune, March 13^th, 2024.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.