A new survey by Stop Illegal Trade (SIT) revealed that over 81% of cigarette brands sold in Pakistan lack tax stamps, exposing widespread excise duty evasion. Only 12% of brands were fully compliant, while nearly 7% appeared in both taxed and untaxed forms, suggesting the existence of a parallel illegal distribution network. The report, “The Unchecked Rise of Illicit Cigarettes in Pakistan,” also found that 47% of cigarette brands failed to display mandatory health warnings, and many were being sold below the government’s minimum retail price of Rs 162.25 ($0.57), violating national tobacco control laws.
SIT’s spokesperson said the findings highlight “regulatory weaknesses” enabling tax evasion and black-market sales that harm both government revenue and public health. The illicit cigarette trade is estimated to make up more than half of Pakistan’s total market, causing annual revenue losses exceeding Rs 415 billion ($1.5 billion).
SIT urged authorities to intensify retail inspections, enforce compliance, and dismantle the networks behind untaxed and non-compliant cigarette sales.
