54% Cigarettes Sold Illegally in Pakistan: Report Reveals

A recent report from the Institute of Public Opinion Research (IPOR) has revealed that 54% of cigarettes in Pakistan are being sold illegally. The report, focusing on the current state of the Track and Trace system in the cigarette industry, highlights discrepancies across 19 districts where the survey was conducted. A total of 413 cigarette brands were identified, but the Federal Board of Revenue’s (FBR) records do not list these brands.

According to the report, only 19 out of the 413 cigarette brands had the required Track and Trace tax stamp. Additionally, only 95 cigarette brands displayed the government-approved pictorial and written health warnings, as per Pakistan’s regulations. A staggering 286 brands were found to have neither the approved health warnings nor the Track and Trace tax stamps.

Since the implementation of the pictorial health warning law in 2009, cigarettes without the required warnings have continued to be sold openly, even after 16 years. The Track and Trace system, introduced in 2021, aimed to combat tax evasion in the cigarette industry. However, the report reveals that 54% of cigarettes are being sold without the Track and Trace tax stamps, making them illegal.

Furthermore, the report disclosed that 332 cigarette brands were being sold at prices below the government-mandated minimum price of 162.25 Pakistani rupees. This raises serious concerns about the effectiveness of the regulations in place to control the cigarette market and curb illegal sales.

The Institute for Public Opinion Research (IPOR) is an independent research institution capable of assessing public opinion on social issues, democracy, and service delivery across Pakistan. It is registered with the Securities and Exchange Commission of Pakistan (SECP) under the Companies Act of 1984.