FBR Launches Nationwide Crackdown on Illegal Tobacco Trade in Pakistan

According to the Middle Eastern news media ARY NEWS on April 22nd, the Federal Board of Revenue (FBR) in Pakistan has launched a nationwide campaign to crack down on untaxed and counterfeit cigarettes. In this operation, the FBR team conducted temporary inspections on a total of 4,652 retailers and closed 33 shops suspected of illegal tobacco trading.

The Chairman of the Federal Board of Revenue (FBR) and members of the Internal Revenue (IR) Action Team commended the dedication and efforts of 204 teams (comprising a total of 1047 individuals) who actively participated in the enforcement operation. The FBR Chairman emphasized the IR's proactive stance in cracking down on illegal tobacco trade. Despite facing challenges such as limited resources and logistics, the domestic reinforcement network remains steadfast in its efforts, the FBR Chairman pointed out.

Prime Minister Shehbaz has ordered action against illegal cigarette factories. The Federal Board of Revenue (FBR) has expressed its commitment to taking decisive action against illegal trading and tax evaders, pledging to take strict measures. Additionally, the FBR has announced plans to intensify crackdowns in the next phase, with a focus on capturing repeat offenders.

In January 2020, Pakistan Tobacco Company had a market share of 4.8 billion cigarettes. However, by February, the company's market share had decreased to 2.6 billion cigarettes, further dropping to 1.8 billion cigarettes in March.

In the past month, the market share of illegal cigarettes has increased to 39% in the last two months, and in the Pakistani market, the supply of smuggled cigarettes has increased by 200%. According to the Pakistan Tobacco Company, in the past two months, up to 70 varieties of smuggled cigarette brands have entered the market, with the market share of illegal cigarettes increasing to 39%.