Increase in Cigarettes smuggling

Islamabad: As cigarettes are highly taxed in Pakistan because of their harmful effects on public health, the government is losing billions in revenues that it could otherwise collect on legal import and sale of tobacco products. According to insiders, 200 truckloads of smuggled goods including cigarettes enter the country every day from across the Afghan border. They blame government agencies and customs officials for lack of a strict check and allege the activity goes on with the connivance of some of them. Industry sources confide that almost Rs 50, 000 are given to Afghan and Pakistani officials as bribe for clearing a single consignment. Estimates suggest that Rs18 billion worth of cigarettes is smuggled into the country every year, besides tea worth Rs16 billion, petroleum products valuing Rs22 billion including smuggled LPG, auto parts and vehicles valuing Rs25 billion and other products of over Rs200 billion including cosmetics, clothing, footwear, medicines, spices, juices, electronics, etc. The government is facing the huge loss of revenue apparently in the absence of concrete steps to stem the illegal trade.

 

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