The Citizens’ Health Initiative (CHI) has raised serious concerns about the increasing presence of unregistered cigarette brands in Pakistan, posing a significant threat to public health policy and the country’s economy amidst its most challenging financial crisis.
According to a spokesperson from CHI, a considerable portion of unregistered cigarette brands in the country is impeding the government’s endeavors to reduce tobacco consumption. These unregistered cigarettes not only burden public health expenditure but also undermine efforts to regulate and document the tobacco industry.
Startling statistics reveal that over 125 unregistered and non-duty-paid cigarette brands are being sold in the market, while out of the 154 available brands, a staggering 128 lack the required tax stamps. This situation leads to significant revenue losses and further exacerbates the problem.
A recent report by a global research firm highlights the challenges faced in tracing locally produced cigarettes, with 83% of cigarette brands sold in the country lacking tax stamps. Additionally, data collected from ten districts in Pakistan indicates that two-thirds of cigarette brands are being sold below the government’s legal price threshold, signaling inefficiencies on the part of authorities.
The spokesperson emphasizes that the sale of cigarettes below the legal price in the Pakistani market is only possible when brands evade taxation by remaining unregistered. Urgent and decisive action by the authorities is necessary to address the issue of unregistered brands and mitigate its consequences.
The implementation of a track and trace system was intended to prevent substantial financial losses to the national exchequer caused by illicit trade. However, the rampant sale of unregistered cigarettes within the country undermines the effectiveness of this system.
To prevent further losses to the national exchequer and safeguard the legitimate industry from the perils of illegal cigarette trade, it is imperative for the Federal Board of Revenue (FBR) to uniformly implement the track and trace system across the entire cigarette industry. This comprehensive approach is crucial to achieving the desired results of the system, as stated by the spokesperson.
The prevalence of unregistered cigarette brands in Pakistan poses a severe threat to public health and the economy. Efforts to reduce tobacco consumption and regulate the industry are impeded, while revenue losses and tracing challenges persist. Swift action, including the implementation of a comprehensive track and trace system, is crucial to addressing this issue and safeguarding public health and the country’s economy from the harms of unregistered cigarette trade.
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