Over 400 Cigarette Brands Sold in Pakistan, Majority Smuggled or Tax-Evading: IPOR Report

Peshawar: A new survey by the Institute for Public Opinion Research (IPOR) has revealed alarming figures regarding the illegal cigarette trade in Pakistan. Out of 413 cigarette brands available in the Pakistani market, 286 are being smuggled from abroad or produced locally without paying taxes. Shockingly, only 19 brands are registered in accordance with government regulations.
The report, officially released by IPOR Executive Director Tariq Junaid in Peshawar, highlights that over 54% of cigarette brands in the market are violating local laws, including the Track and Trace System (TTS) and mandatory Graphical Health Warnings (GHWs).
The study surveyed 1,520 retail outlets across 19 districts, identifying a total of 413 brands. Among them, only 19 brands fully complied with the Track and Trace System, while 286 brands lacked both tax stamps and health warnings.
Despite the introduction of GHWs in 2009 and the implementation of TTS in 2022, enforcement remains weak. According to the report, 45% of the illegal brands are smuggled from abroad, while 55% are produced domestically without tax compliance.
The report also revealed that 332 brands are being sold below the legal minimum price of PKR 162.25, with some selling for as low as PKR 40. This not only violates pricing laws but also causes significant revenue loss to the national treasury.
Enforcement disparities were also noted between urban and rural areas. Law violations were higher in rural areas at 58%, compared to 49% in urban centers, highlighting the need for stricter oversight in less monitored regions.
Tariq Junaid noted that retailers appear unafraid of legal consequences, and called on the government to enforce stricter checks and take immediate action against the illegal trade.
IPOR has urged authorities to prioritize law enforcement, strengthen regulatory mechanisms, and curb the illegal cigarette trade to protect national revenue and ensure fair competition for businesses.
The Federal Board of Revenue (FBR) currently earns PKR 300 billion annually from the tobacco sector, but lacks adequate infrastructure for widespread enforcement. The report recommends bringing all brands into the tax net to combat the illicit market and recover lost revenue.