KARACHI: Sales of illegal cigarettes in Pakistan have risen significantly due to considerable increase in federal excise duty (FED). Speaking during meeting with journalists in Karachi, Chief Financial Officer of Philip Morris Pakistan Muhammad Zeeshan stated widening gap between taxes on legal and illegal cigarette sales has resulted in Pakistan becoming second-largest country in Asia for sale of illegal cigarettes, following Malaysia.

Zeeshan emphasised that without curbing illicit cigarette trade, an increase in FED would not be effective as entire burden of taxes falls on legal cigarette industry. He urged government to apply laws uniformly across entire industry, implement track and trace across all companies and provide an environment in which an organised, tax-paying industry can thrive.

Zeeshan noted that impact of significant increase in excise duty has already begun to affect legal cigarette industry and government will also face negative impacts in form of reduced tax revenue from cigarettes.

Published in The Daily National Courier, April, 17 2023

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