Illegal cigarette market share reaches 42.4%

ISLAMABAD: The illegal cigarette market share in Pakistan has surged to 42.4%, causing significant losses to the national exchequer, ARY News reported.

According to a report, the illegal cigarette trade has increased by 171% since 2019, while taxes and duties on legal cigarettes have risen by 154%.

The report found that 42.4% of packets consumed in four districts – Lahore, Kasur, Sheikhupura, and Nankana – were illegal.

The tobacco market has grown significantly, with smuggled cigarettes accounting for 42.4% of the market share, resulting in a substantial loss of revenue for the government.

The report attributes the increase in cigarette consumption to the significant increase in Federal Excise Duty (FED) on legal cigarettes, which has led to a rise in the demand for cheaper, illegal alternatives.

The trade has resulted in a significant loss of revenue for the government, with the report estimating that the national exchequer has suffered a substantial blow due to the illegal cigarette trade.

The Ministry of Finance and the Federal Board of Revenue (FBR) have taken notice of the increasing market share of illegal tobacco.