22.1 C
Islamabad
Saturday, November 23, 2024

Local tax evading cigarettes brands denting economy

Must read

Daily The Spokesman November 23 2024 PDF

Daily The Spokesman November 23 2024 PDF

Sultanate of Oman marks fifty-fourth glorious National Day with milestone accomplishments

Spokesman Report On the eighteenth of November of each year, the Sultanate of Oman celebrates its National Day, which is the fifty-fourth glorious National Day...

Reforms and innovations create a solid foundation for sustainable development of agriculture in New Uzbekistan

Spokesman Report Tashkent: It is difficult to imagine economic development in any country without a strong focus on agriculture. The well-being of citizens in every...

Spokesman Report

ISLAMABAD: The illicit cigarette manufacturers in Pakistan continue luring youth across Pakistan with low priced illegal brands despite enforcement, in certain parts of the country.

Shopkeepers in major markets of cities and towns across Pakistan are openly selling illegal cigarette packs with a price of around Rs15 to 35 which is far below than the minimum price of Rs. 62.76, for a 20 cigarettes packs, mandated by law.

More than 200 local illicit cigarette brands are selling at Rs20 to 40 whereas minimum tax per pack is Rs42.12 and minimum price is Rs62.76. This minimum tax and minimum price law violations compromise the government’s fiscal objectives as well as the public health agenda.

Consumers buy illegal cigarettes because the manufacturers, by evading both excise and sales taxes, are able to offer them at lower prices making them much more affordable than the legal tax-paid cigarettes. Illicit cigarette manufacturing mafia not only dents the economy but also mocks the national health laws of the country.

According to a study, around 1,200 children between the ages of 6 and 15 take to smoking every day in Pakistan but the government and relevant institutions need to gauge the exact cause of this smoking trend. Analysts question the current rising trend of smoking in youth, How can an underage child buy cigarettes? Is every underage child buying a complete cigarette pack or is the option of loose cigarettes available to him so that he is using his pocket money to get one or two sticks? Who is the culprit; cigarette price in general or weak law enforcement?

Law enforcement agencies failed to keep a check on shopkeepers to stop them from selling illegal brands which are available around 20-35 rupees for 20 cigarettes packs and secondly also stop them from selling loose cigarettes, thirdly take a stern action against shopkeepers involved in sale of cigarettes to minors.

Ahsen Hameed, a resident of Islamabad and a doctor by profession also requested the prime minister and district authorities to check how school and college going children are getting cigarettes. He stated that he is worried for his son when he does not see a cigarette pack but knows that he is buying a loose cigarette. He questioned the performance of government authorities stating that if authorities cannot control wrongdoers in the federal capital then one can imagine the bad situation in other parts of the country.

Shaista Khan, a teacher from Islamabad shared her concerns saying that students nowadays can be seen smoking and the worrisome question is how they are able to buy a cigarette which is by law prohibited to be sold to minors. She urged police and other law enforcement agencies to take action against shopkeepers who are involved in cigarette sales to underage youth.

Industry experts believe that illicit cigarette manufacturing mafia will be at an advantage if the tax increases as tax paying manufacturers will comply and increase their prices but illicit cigarette manufacturers do not comply with this which leads to a consumer downshift to cheaper and low quality products.

- Advertisement -Local tax evading cigarettes brands denting economy

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -Local tax evading cigarettes brands denting economy

Latest article

Daily The Spokesman November 23 2024 PDF

Daily The Spokesman November 23 2024 PDF

Sultanate of Oman marks fifty-fourth glorious National Day with milestone accomplishments

Spokesman Report On the eighteenth of November of each year, the Sultanate of Oman celebrates its National Day, which is the fifty-fourth glorious National Day...

Reforms and innovations create a solid foundation for sustainable development of agriculture in New Uzbekistan

Spokesman Report Tashkent: It is difficult to imagine economic development in any country without a strong focus on agriculture. The well-being of citizens in every...

Daily The Spokesman November 22 2024 PDF

Daily The Spokesman November 22 2024 PDF