Illicit Cigarette Trade Reaches Alarming Levels, Causing Rs 300 Billion Annual Loss

A recent survey by IPSOS has revealed that the illegal cigarette trade in Pakistan has reached an alarming level, with 165 cigarette brands being sold without tax stamps. This illegal trade is expected to reach 56% of the total cigarette market by the end of the current financial year.

According to the survey, 104 cigarette brands sold at prices lower than the minimum price fixed by the government. This illegal trade is causing an annual loss of over Rs 300 billion to the national exchequer.

The survey further revealed that the total volume of cigarettes sold without tax stamps is 53% of the total market share. Cigarettes priced between Rs 65 to Rs 220 per packet account for 95% of the total illegal trade.

The survey also found that illegal cigarette packets now sold in packs of 25 and 30 cigarettes, instead of the standard 20 cigarettes per pack. Consumers are increasingly shifting from duty-paid cigarettes to non-duty-paid and smuggled cigarette brands.

The IPSOS survey has raised concerns about the growing illegal cigarette trade in Pakistan, which is not only causing significant revenue loss but also posing health risks to consumers due to the absence of quality control and taxation.