ISLAMABAD: The World Health Organisation (WHO) has challenged claims made by multinational tobacco companies regarding the scale of the illicit cigarette trade in Pakistan, revealing that the actual figure stands at 23 per cent.
According to the WHO’s report, titled “Study on Incidence of Illicit Trade of Cigarettes in Pakistan: A Case Study for Islamabad Capital Territory,” 23.1 per cent of the cigarette trade in Pakistan is illicit. The report specifies that locally produced cigarettes without the tax authority’s stamp constitute 10.4 per cent of the total market.
Additionally, the study details that 1.9 per cent of cigarette packs have counterfeit tax stamps, while smuggled cigarettes account for 10.7 per cent of total consumption.
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Previous research on the illicit trade in Pakistan, conducted before the implementation of the Track and Trace System in July 2022, estimated the illicit market to be between 9 and 17 per cent. However, these earlier studies did not consider the prevalence of counterfeit products, the WHO noted.
“The most effective way to reduce tobacco consumption is by increasing the price of tobacco products through higher taxes,” the report states. It highlights that the cigarette industry in Pakistan argues that higher taxes encourage illicit trade, claiming that smokers do not quit but instead purchase cheaper, non-duty-paid cigarettes.
The WHO counters this narrative by emphasizing the need to increase tobacco prices through taxation, suggesting this is crucial for reducing tobacco consumption in the country.
