
According to a report by the DailyTimes on May 21, the World Health Organization (WHO) has refuted claims by international tobacco companies regarding illegal tobacco trade, stating that Pakistan actually accounts for 23% of such trade. WHO's research shows that unmarked locally-produced cigarettes account for 10.4% of the total amount of illegal tobacco trade in Pakistan.
The latest report from the World Health Organization reveals that counterfeit tax stamps on tobacco packaging account for 1.9% of total packaging, while smuggled tobacco makes up 10.7% of total consumption. Additionally, the WHO has debunked many rumors and strategies used by multinational tobacco companies to evade taxes.
Before the implementation of a tracking and tracing system in the country, multiple studies were conducted to estimate the volume of illegal trade in Pakistan. These studies found that the illegal trade market in Pakistan accounted for 9% to 17%, but they did not estimate the severity of the counterfeiting issue.
The report cites data from the Pakistan Bureau of Statistics (PBS) indicating that the amount of tax evasion from domestic cigarettes reached 53.8 billion rupees in 2015-2016. Of this amount, 38.9 billion rupees (72.7%) was evaded through underreporting production levels by the legal industry, while 14.6 billion rupees (27.3%) was evaded through other means.
A research report indicates that the most effective way to reduce tobacco consumption is by increasing taxes to raise the prices of tobacco products. In Pakistan, the cigarette industry claims that higher taxes will lead to illegal trade, arguing that smokers will not quit but rather switch to cheaper untaxed cigarettes.
The world's top medical institution emphasizes that taxing the tobacco industry is necessary to raise the prices of tobacco products in Pakistan.
Anti-tobacco activists are urging the government to increase tobacco taxes to 70% of retail prices in order to align with World Health Organization guidelines and prevent the alarming rate of tobacco consumption among young people.
We welcome news tips, article submissions, interview requests, or comments on this piece.
Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn
Notice
1. This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.
2. The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.
3. This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.
4. Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.
Copyright
This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.
For copyright-related inquiries, please contact: info@2firsts.com
AI Assistance Disclaimer
This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.
We welcome any corrections or feedback. Please contact us at: info@2firsts.com