Pakistan Government: Tobacco Black Market at 18%
After increasing the federal excise duty on tobacco products, the Pakistani government anticipates an additional PKR 60 billion (USD 200 million) in revenue, as reported by The Pakistan Observer on May 2nd. Multinational tobacco companies claim that raising tobacco consumption taxes would increase the illegal tobacco product market in the country.
However, the Pakistani government states that multinational tobacco companies erroneously claim that illegal tobacco products account for 40% of the market, citing independent research that indicates illegal products make up only 18% of the market. It has been reported that tobacco companies have exaggerated the number of illegal sales to pressure the government after the tax increase.
Malik Imran, National Head of the Tobacco-Free Kids Campaign, asserts that the implementation of a tracking system would help reduce illegal products. "For now, we can say that this number can be considered negligible", he said.
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