ISLAMABAD – The World Health Organization (WHO) has released a report debunking myths about the illicit trade of cigarettes created by multinational companies. The report states that the illicit trade market in Pakistan ranges from 9 to 17 percent of the total cigarette market. However, none of the studies has estimated the extent of the counterfeit issue.
The study, titled “Study on Incidence of Illicit Trade of Cigarettes in Pakistan: A Case Study for Islamabad Capital Territory,” also emphasizes that increasing tobacco product prices is the most effective way to reduce tobacco consumption.
As part of this study, the WHO surveyed the cigarette retail market in Islamabad to determine the number of illicit cigarette packs. Out of fifty union councils in Islamabad, ten were selected using a multistage sampling technique. The study collected 500 empty cigarette packs from vendors, streets, and garbage depots/dumps in each union council.
The world’s top health body emphasized that the prices of tobacco products in Pakistan should be increased by taxing the tobacco industry. According to the study, based on Pakistan Bureau of Statistics data, tax evasion on domestically produced cigarettes in 2015-16 amounted to Rs 53.8 billion, out of which Rs 38.9 billion, which is above 72 percent of the total share, was evaded by the legitimate sector. It is estimated that Khyber Tobacco Company (KTC) has a market share of 9.5 percent and is the third largest tobacco company.
The study found that the illicit market share is around 23%, of which 47% is smuggled and 45% is non-tax-paid. The study reveals that 8% of the illicit market share consists of counterfeit cigarettes.
Anti-tobacco activists have urged the government to raise tobacco taxes to 70% of the retail price, in line with WHO guidelines, to combat the alarming rate of tobacco consumption among youth. Malik Imran Ahmed, Country Head of the Campaign for Tobacco-Free Kids (CTFK), said, “With over 60% of the population comprising youth, the government must protect them from the ills of tobacco use, “as the move is expected to generate additional revenue, surpassing Rs 200 billion by year-end.”
