According to a report in the Pakistani Observers newspaper on May 2nd, the Pakistani government expects to generate an additional revenue of 60 billion Pakistani rupees ($200 million) after increasing the federal consumption tax on tobacco products.
A multinational tobacco company argues that raising tobacco consumption taxes would increase the illegal tobacco product market in the country.
However, the Pakistani government has stated that multinational tobacco companies have falsely claimed that illegal tobacco products make up 40% of the market in their country, and has cited independent research showing that these products actually only make up 18% of the market.
It has been reported that tobacco companies have overstated the number of illegal sales in order to pressure the government after tax increases.
Malik Imran, national head of the Smoke-Free Kids campaign, has stated that the implementation of tracking systems has helped to reduce illegal products. He commented, "For the time being, we can say that this number is now negligible.
Reference:
Pakistan anticipates an increase in tax rates to enhance revenue.
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