ISLAMABAD: In a recent revelation, it was disclosed that a total of 165 cigarette brands are being sold in Pakistan without tax stamps, ARY News reported on Thursday.
According to details, it has been revealed that more than 165 brands of cigarettes are being sold in the country without tax stamps, meanwhile, the volume of illegal cigarette trade is expected to reach 56 percent by the end of the current financial year.
The findings of the Ipsos survey highlight a significant issue within the cigarette industry, particularly regarding tax evasion and the sale of cigarettes below the government’s prescribed minimum price.
The substantial annual loss of over Rs 300 billion underscores the magnitude of this problem and its impact on both government revenues and legitimate businesses within the industry.
The fact that 104 cigarette brands are being sold below the minimum price indicates a widespread problem that requires urgent attention from regulatory authorities.
Additionally, the shift towards duty-free and smuggled cigarette brands, facilitated by the availability of larger pack sizes, further exacerbates the issue of tax evasion and undermines efforts to regulate the tobacco market.
Addressing these challenges will likely require a multi-faceted approach, including stricter enforcement of existing regulations, enhanced measures to combat smuggling and illicit trade, and potentially revisiting tax policies to deter tax evasion and ensure a level playing field for all stakeholders in the industry.
