Report By CBN247 :
Institute for Public Opinion and Research (IPOR) arranged seminar titled ‘A Nationwide Market Assessment of Track and Trace Compliance in Pakistan Tobacco Industry’ at Peshawar Press Club, on Wednesday.
The speakers said that data is collected from August to December 2024 and it is revealed from sale points. They claimed that data has been collected from 19 cities across Pakistan which stand at 1540 sale points.
IPOR has categorized cigarette into two types like compliant brands and non-compliant brand while latter is further divided into two groups as locally manufactured but didn’t pays duty and smuggled brands.
The report reveals widespread tax evasion and open sale of smuggled cigarette brands throughout the country. According to IPOR Executive Director Tariq Junaid illegal cigarettes are being sold openly and he urged the government to curb this trade in order to prevent further loss to national revenue.
The IPOR report states that over 54% of cigarette brands are violating regulations. Out of 413 cigarette brands surveyed only 19 were found to comply with the Track and Trace System, while 332 brands were being sold below the legally mandated minimum price.
Speaking at a seminar held Tariq Junaid said that more than 54% of the cigarette brands available in the Pakistani market are non-compliant with local laws including the Track and Trace System (TTS) and mandatory Graphical Health Warnings (GHWs). The study identifying a total of 413 cigarette brands and only 19 brands fully complied with the Track and Trace System while 286 brands lacked tax stamps and required health warning images.
Despite the implementation of Graphical Health Warnings in 2009 and the Track and Trace System in 2022 enforcement remains significantly weak underscoring the urgent need for effective action, said Tariq Junaid. According to the report 45% of the illegal brands are smuggled from abroad, while 55% are locally manufactured without paying taxes.
Furthermore 332 brands are being sold below the legal minimum price of Rs. 162.25, with some available for as low as Rs. 40. This not only violates pricing regulations but also results in massive losses to the national treasury.
Data also shows weak law enforcement in rural areas where non-compliance rates are as high as 58%, compared to 49% in urban areas. This calls for focused monitoring and stricter oversight in rural regions. Tariq Junaid added Retailers seem to have no fear when it comes to selling illegal cigarettes.
The government must implement strict checking mechanisms at shops and take immediate action against unlawful trade. IPOR urged authorities to prioritize the enforcement of laws strengthen regulatory systems and control the illegal cigarette trade to safeguard national revenue and ensure fair competition for legal businesses.
