LAHORE: The Federal Board of Revenue (FBR) must target manufacturers, in addition to retailers and wholesalers, in its fight against illicit cigarette production. Experts have long urged action against manufacturers of smuggled and tax-evading cigarette brands, warning that the illegal trade is costing the economy billions of rupees.
Recently, the FBR has intensified efforts against small vendors and wholesalers, confiscating illegal cigarettes and imposing fines. While these actions are commendable, it is crucial to include tax-evading manufacturers in the crackdown.
International research institutes report that Pakistan loses 310 billion rupees annually due to unpaid excise taxes from the illegal cigarette trade. This not only impacts the economy but also hampers efforts to address associated health risks. By taxing manufacturers at the tobacco processing stage and implementing a robust track-and-trace system, the government could significantly reduce these losses.
