The sales of illegal cigarettes in Pakistan have risen significantly due to a considerable increase in federal excise duty (FED). Speaking during a meeting with journalists in Karachi, Chief Financial Officer of Philip Morris Pakistan Muhammad Zeeshan stated the widening gap between taxes on legal and illegal cigarette sales has resulted in Pakistan becoming the second-largest country in Asia for the sale of illegal cigarettes, following Malaysia. Zeeshan emphasized that without curbing the illicit cigarette trade, an increase in FED would not be effective as the entire burden of taxes falls on the legal cigarette industry.
He urged the government to apply laws uniformly across the entire industry, implement track and trace across all companies, and provide an environment in which an organised, tax-paying industry can thrive. Furthermore, Zeeshan noted that the impact of the significant increase in excise duty has already begun to affect the legal cigarette industry.
