From: The News
LAHORE
The share of illicit cigarette consumption in Pakistan is more than 23 percent. This means that 19.5 billion cigarette sticks are sold without the payment of duty and tax every year.
These views were expressed by the speakers at a seminar on illicit cigarette trade for district officials attended by police officials as well as district administration officials. The speakers informed the officials that the government exchequer loses more than Rs24 billion in duties and taxes. It was highlighted that the legal industry which had 76.3 percent share of the market pay more than 99 percent of the taxes whereas the illicit segment which has 23.7 percent share pays less than one percent. The main reasons cited for this illicit trade incidence in Pakistan include increasing tax-led price differential, weak enforcement, porous borders and lack of awareness.
