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ISLAMABAD, Jul 02 (APP):The Fair Trade in Tobacco (FTT) has urged the the Federal Board of Revenue (FBR) to intensify efforts against illegal cigarette trade in the country, warning that tax evasion in the sector was costing the economy nearly Rs. 400 billion annually.
Speaking at a seminar here on Wednesday, FTT Chairman Ameen Virk praised recent enforcement actions by the FBR and its intelligence wings but emphasized the need for sustained, institutional action. “This is not a minor leakage, it is a structural crisis that undermines national development,” Virk said.
He described the illicit cigarette trade as a “systematic economic crime” that not only deprives the national treasury of vital tax revenues but also violates public health and consumer protection laws.
Despite several crackdowns and regulatory frameworks, dozens of illegal manufacturers reportedly continue to operate openly in various parts of the country.
“Every rupee that goes uncollected because of tax evasion in the cigarette sector is a rupee not spent on infrastructure and development for our citizens,” said Virk, addressing media and policy experts.
He stressed that while licensed tobacco companies contribute around Rs. 300 billion in taxes annually, more than 40 illicit operators are evading almost all fiscal obligations.
According to FTT, these illegal businesses not only avoid taxes but also flout national health mandates by ignoring the Track and Trace System, selling products below the minimum legal price, and failing to carry proper health warnings.
“They advertise freely, distribute unregistered products, and face virtually no consequences,” Virk said.
FTT welcomed recent enforcement operations carried out by FBR field formations, Customs Intelligence, and the Inland Revenue Enforcement Network, particularly the seizure of non-compliant brands.
However, Virk warned against treating these actions as isolated events. “We need institutional continuity in enforcement. One successful raid must lead to ten more. These criminal networks do not pause, and neither should the state,” he added.
The illegal cigarette trade, Virk argued, is part of a broader pattern of tax evasion seen in sectors like petroleum and real estate, which ultimately constrains the government’s ability to fund hospitals, schools, and infrastructure. “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,” he said.
The seminar, attended by media professionals, economists, and civil society representatives, concluded with a strong call for policy coherence and political will.
FTT urged the government to strengthen enforcement units with proper legal mandates and sufficient resources to dismantle smuggling networks.
“We stand with the government and the FBR,” said Virk in his closing remarks. “But we also demand consistency, accountability, and results.
The illegal cigarette trade is not just an economic issue; it is an attack on Pakistan’s regulatory authority and institutional credibility.”