Retailers’ ignorance fuels illicit cigarette trade: study
The illicit cigarette trade in Pakistan has emerged as a serious economic and public health concern, driven by weak regulatory enforcement and a significant knowledge gap among retailers, according to a new study. The report, titled ‘Tax Stamps and Illicit Cigarette Sales in Pakistan: Understanding Retailers’ Knowledge Gap’, was released by Umeed-i-Sehar, a non-profit organisation focused on public health initiatives. Based on a survey of 2,000 retailers in seven major cities — including Karachi, Lahore and Islamabad — the study paints a troubling picture of regulatory neglect and widespread retailer unawareness. An overwhelming 97pc of retailers said they had never been approached by Federal Board of Revenue (FBR) officials for compliance guidance, while 86pc were unaware of the government-imposed penalties for selling illicit cigarettes. Only 27pc of retailers could differentiate between tax-paid and illicit cigarette packs.