Sale of illegal cigarettes continues unabated in Pakistan

The sale of illegal cigarettes in the country has increased significantly since the imposition of the Federal Excise Duty (FED), according to a quarterly report released by the State Bank of Pakistan. The output of the official cigarette industry declined by 35.5% due to the increase in FED as it pushed the consumers towards cheaper alternatives in the form of counterfeits and cigarettes smuggled from abroad.

Officially, the lowest cost of a packet of cigarettes is fixed at around Rs63, from which the tobacco companies are bound to pay at least Rs42 in taxes to the government.

Source: Geo