Illegal cigarette production blamed for huge losses

PESHAWAR: Federal Minister of State Ali Pervez Malik and KP Advisor to Chief Minister of Finance Muzammil Aslam on Sunday to discuss the issue of tobacco smuggling and illegal cigarette manufacturing.

According to a handout, the meeting was attended by the Excise Minister of Khyber Pakhtunkhwa, representatives from the Federal Board of Revenue (FBR), the Pakistan Tobacco Board, and tobacco companies.

A detailed discussion was held on tobacco smuggling and illegal cigarette manufacturing. It was highlighted that there was a revenue loss of over Rs567 billion to the country over the past decade. Furthermore, the severe health risks associated with these illicit activities were underlined.

The meeting resulted in key agreements between federal and provincial government representatives, including strengthening the estimation process to prevent illicit tobacco cultivation, enhancing track and trace mechanisms for implementing better tracking systems to monitor tobacco products and data sharing for improved surveillance for facilitating data sharing to enhance surveillance on cigarette exports.

The KP adviser emphasized provincial excise duty on tobacco was ring-fenced to support health service delivery in the province.He asked the manufacturers to withdraw their legal challenges and engage in constructive dialogue for a mutually beneficial resolution. The meeting concluded with the formation of a special technical committee to prepare a comprehensive action plan for the implementation of the decisions made.