MULTAN: The Pakistan Tobacco Company (PTC) has revealed alarming market trends, indicating that the sale of illicit cigarettes, including smuggled, tax-evaded, and counterfeit products, has surged to approximately 60% in South Punjab. This surge has led to significant revenue losses amounting to billions of rupees for the national exchequer.
During a media briefing in Multan, Business Development Analyst Mohsin Ali highlighted the severe impact of tax evasion and smuggling on South Punjab, where illicit cigarette brands are openly available at retail outlets. Consumers, faced with successive hikes in excise duties, are increasingly turning to cheaper illicit alternatives, exacerbating the problem. Despite regulations, enforcement efforts have failed to deter the widespread sale of illegal cigarettes.
Media representatives conducted market visits across Multan, exposing the rampant trade in illicit cigarettes and the flagrant flouting of laws. Despite the government’s establishment of a minimum cigarette price at PKR 127.44 per pack, many brands are sold below this threshold, ranging from Rs. 80 to Rs. 130. Furthermore, a majority of these illicit products lack Track and Trace Stamps and Graphical Health Warnings, indicating a blatant disregard for regulations.
Illicit cigarette manufacturers employ various tactics, including distributing free packets and offering reward schemes, to evade regulations and expand their operations. To address this concerning trend, the government must mobilize Law Enforcement Agencies (LEAs) to combat the organized crime networks facilitating the sale and distribution of illicit cigarettes effectively.
