Excise duty structure fuels counterfeit cigarette use: report

The current excise duty structure on tobacco products has led consumers to shift from legally compliant cigarette brands to illegal, tax-evaded ones, causing an estimated annual revenue loss of Rs310 billion for the national exchequer. Illicit cigarette brands now hold over 60% of the total market, as revealed in a report titled “Illicit Cigarette Trade in Pakistan – Current Situation and Way Forward,” released by the National University of Sciences & Technology (NUST). The report was formally launched at a local hotel ceremony attended by Federal Minister for Defence, Khawaja Muhammad Asif, and Dr Rizwan Riaz, the Pro-Rector of Research Innovation and Commercialisation at NUST. They were briefed on the intricate challenges facing the cigarette industry, including administration, revenue collection, policy coordination, and market dynamics, exacerbating tax revenue losses.