A recent survey conducted by the Institute for Public Opinion Research (IPOR) has found that 54 percent of cigarettes sold in Pakistan are illegal, primarily due to the absence of required tax stamps under the track and trace system. The study, which spanned 19 districts, identified 413 cigarette brands, none of which were registered with the Federal Board of Revenue (FBR). Only 19 brands were found to carry tax stamps, while a staggering 286 brands lacked both the approved health warnings and the necessary tax stamps.
Despite the implementation of a law in 2009 mandating pictorial health warnings on cigarette packs, only 95 brands were found to be compliant, leaving many others on the market without proper labeling. The track and trace system, introduced in 2021 to combat tax evasion in the tobacco industry, has not achieved its intended effect, as the survey indicates that most brands remain non-compliant.
Additionally, the survey revealed that 332 cigarette brands are being sold below the government-mandated minimum price of Rs. 162.25 per pack. It was noted that 45 percent of cigarette products available at points of sale are smuggled, with 286 brands being sold across the country without the required track and trace stamps.
The cheapest pack of cigarettes identified in the survey costs Rs. 40, highlighting the ongoing challenges in regulating the tobacco market in Pakistan.