ISLAMABAD: Illicit tobacco trade loss has reached Rs 91 billion in the last five years due to non-implementation of the existing laws.
It has been revealed in a report that more than Rs 17 billion cigarettes are being sold in the country. Pakistan cigarettes market consists of 33 percent illegal operators despite having one of the most comprehensive regulatory frameworks for tobacco control. The existing laws span the entire supply chain beginning with the cultivation of tobacco right to its sale and consumption. Tobacco advertising, promotion and sponsorship alone are regulated by seven different laws, none of which are being implemented in true spirit. There are 25 laws and 13 organisations working to stop the illicit trade which includes Ministry of National Health, Custom, Inland Revenue, Federal Investigation Agency, Police, Pakistan Coast Guards, Rangers, Frontier Constabulary, Intellectual Property Rights, Pakistan Tobacco Board, Excise and others but there have been no convictions of individuals evading these laws.
Currently, the legitimate market holds 60% of the total market share. The remaining 40% is held by the illegal cigarette industry, which is growing unabated. It is important to note here that this very segment of the industry has caused a loss of Rs 91 billion to the national exchequer through tax evasion.
The report indicates that Pakistan has signed to become the member of Economic Cooperation Development Organisation (OECD) and now it is important that the government expedite the implementation of the existing laws. The need of the hour is to follow the regulatory governance model used world over to gauge the enforcement gap. It is almost a criminal act that a strong regulatory framework on tobacco control has failed to bring down smoking incidence simply because of lack of ownership and will to implement.