He emphasized the significant loss in potential tax revenue, stating that the sector could generate up to Rs 570 billion ($2 billion) annually. However, only Rs 292 billion ($1 billion) was collected during the fiscal year 2023-24, with Rs 223 billion ($781 million) received in the first 11 months of the current fiscal year.

Shah revealed that while the legal cigarette sector holds just 42% of the market, it contributes a staggering 98% of the total tax revenue. He criticized the lack of penalties for violating minimum pricing laws, stressing that no policy can be effective without equal enforcement across the board. He also raised alarm over the sale of locally produced cigarettes without tax stamps, which undermines the government’s track-and-trace system.

To address these issues, Shah proposed several measures, including a revision of the minimum pack price to counter the perception that cigarettes are inexpensive in Pakistan. He also recommended a significant reduction in the adjustable tax on cigarette filter material (acetate tow) from Rs 44,000 $154) per kg to Rs 4,000 (14) per kg to discourage smuggling. Authorities have already seized 450 metric tons of smuggled acetate tow this year.

The post Pakistan’s Illicit Cigarette Trade Surges to 58% of Market first appeared on Tobacco Reporter.

“Our highly profitable traditional tobacco businesses performed well in a challenging environment in the first quarter,” said Billy Gifford, Altria’s Chief Executive Officer. “The smokeable products segment delivered solid adjusted operating companies income growth behind the strength of Marlboro. In the oral tobacco products segment, on! maintained momentum in a competitive marketplace as Helix invested strategically behind the brand. And shareholders continued to benefit from strong cash returns through dividends and share repurchases, while we invested in pursuit of our Vision.”

“We continue to expect to deliver a full-year 2025 adjusted diluted EPS growth rate of 2% to 5% versus 2024. This growth rate represents full-year adjusted diluted EPS in a range of $5.30 to $5.45 from a base of $5.19 in 2024. Our guidance excludes amortization expense associated with definite-lived intangible assets, which was previously included in our adjusted results.”

Highlights from the report included:

• Q1 revenue decreased 5.7% to $5.3 billion
• NJOY U.S. retail share increased 2.4 points to 6.6%
• Shipments of NJOY ACE were discontinued March 24, per ITC orders
• Paid $1.7 billion in first-quarter dividends
• Smokeable domestic shipments decreased 13.7%
• Net revenues for oral tobacco products increased by 0.5%

See the full report here.

The post Altria Down 5.7% in First Quarter first appeared on Tobacco Reporter.