54% of Cigarettes Sold Illegally in Pakistan: Survey

54 percent of cigarettes sold in Pakistan are illegal due to a lack of required tax stamps under the track and trace system, according to a survey conducted by the Institute for Public Opinion Research (IPOR). The study was conducted across 19 districts and identified 413 cigarette brands, none of which were registered with the Federal Board of Revenue (FBR). Only 19 brands carried tax stamps, while 286 brands neither had the approved health warnings nor the required tax stamps. Pakistan implemented a law mandating pictorial health warnings on cigarette packs in 2009, yet 95 brands were found to comply, while the rest continued to be sold without proper labeling. The track and trace system was introduced in 2021 to curb tax evasion in the tobacco industry, but the survey shows most brands as non-compliant. The survey also reveals that 332 cigarette brands are being sold below the government-mandated minimum price of Rs. 162.25 per pack. Based on brands available at point of sale, 45 percent of the cigarette products are smuggled while there are 286 brands without the track & trace stamp being sold across the country. The cheapest pack of cigarettes costs Rs. 40, the survey revealed.