Pakistan’s Fair Trade in Tobacco (FTT) called on the Federal Board of Revenue (FBR) to intensify efforts against the illegal cigarette trade, warning that the country is losing nearly Rs. 400 billion ($1.4 billion) annually to tax evasion in the tobacco sector.
Speaking at a seminar in Islamabad, FTT chairman Ameen Virk praised recent enforcement actions but stressed the need for sustained, institutional measures. “This is not a minor leakage, it is a structural crisis that undermines national development,” he said.
Virk described the illicit trade as a “systematic economic crime” that not only drains public revenue but also defies health and consumer protection laws. He said that while licensed companies contribute around Rs. 300 billion ($1.1 billion) in taxes each year, over 40 illegal operators avoid taxes entirely and ignore regulations such as the Track and Trace System and health warnings.
Despite periodic crackdowns, many illegal manufacturers continue to operate openly, Virk said, urging the FBR to treat each enforcement action as part of a broader campaign. The FTT warned that illegal trade is part of a wider pattern of tax evasion across sectors like real estate and petroleum, hampering the government’s ability to fund essential services.
“The illegal cigarette trade is not just an economic issue; it is an attack on Pakistan’s regulatory authority and institutional credibility,” he said. “If we recovered even half of what is being lost to illegal cigarette trade every year, Pakistan would have new hospitals, upgraded schools, and a lower fiscal deficit.”
