Illegal cigarette market share jumps to 39%

ISLAMABAD: The market share of illicit cigarettes increased to 39 per cent in the past two months, while the availability of smuggled cigarettes in the Pakistani market increased by 200 per cent, ARY News reported on Wednesday.

According to Pakistan Tobacco Company, as many as 70 smuggled cigarette brands have entered the market in the past two months, while the market share of illegal cigarettes increased to 39 per cent.

Pakistan Tobacco Company’s market share in January was 4.8 billion cigarettes, while in February, the tobacco company’s market share decreased to 2.6 billion cigarettes which further decreased to 1.8 billion cigarettes in March.

On the other hand, the illicit cigarette market share in January was 2.8 billion cigarettes, while in February, the Illegal cigarette market share increased by 4.6 billion cigarettes which further increased to 4.8 billion cigarettes in March.

The cigarette industry paid total taxes of Rs92 billion in the fiscal year 2022-23 and the tobacco company is likely to submit Rs135 billion in tax this fiscal year.

The foreign cigarette packs do not carry government-approved health warnings as the cigarettes smuggled to Pakistan are from Afghanistan and Iran.

Despite a 20 per cent increase in excise duty, the revenue has only increased by 14 per cent.