Multan: Pakistan Tobacco Company (PTC) shared latest market trends and informed that sale of illicit (smuggled, tax evaded and counterfeit) cigarettes has increased to around 60 percent in South Punjab, resulting in loss of billions of rupees to national exchequer.

Addressing media here, Business Development analyst Mohsin Ali mentioned that South Punjab has been most affected by tax-evaded and smuggled brands, which are being openly sold at retail outlets.

After successive increases in excise duties, consumers have moved to cheaper, tax evaded and smuggled cigarette options which are illegal. Irony is that these cigarette brands are openly sold in market as enforcement has not been able to create desired level of deterrence.

Market visit was conducted to different areas in Multan by media personnel to overview growing trend of illicit cigarettes and how laws are openly being flouted. It is important to note that government of Pakistan has set minimum price of pack of cigarettes at Rs 127.44, which is not being enforced in letter and spirit. Majority of cigarette brands are being sold at prices ranging from Rs 80 to Rs 130. It was also observed that majority of cigarettes being sold were without Track and Trace Stamps. Smuggled cigarettes of various brands were also available which were being sold without Graphical Health Warning. Illicit cigarette manufacturers are openly flouting rules and regulations through free cigarette packets and reward schemes among other activities.

Published in The Daily National Courier, March, 13 2024

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