Pakistan’s Federal Board of Revenue (FBR) chairman, Rashid Mahmood Langrial, said massive tax evasion in the tobacco sector is costing the country’s economy nearly Rs300 billion ($1.1 billion), and that, because of limited manpower, only one out of 10 trucks carrying illicit cigarettes is caught.
Langrial said the FBR is working to train and empower local law enforcement agencies within the provinces to battle illicit trade at the retail level, and that any cigarette without a mandatory stamp is illegal and subject to seizure.
This comes at a time when the leading legal cigarette manufacturers in Pakistan are reporting significant decreases in sales volumes, presumably because the government placed a 200% Federal Excise Duty (FED) on all brands of cigarettes in the budget for the 2025-2026 fiscal year. Still, sources told Business Recorder that the FBR is facing strong international pressure from the World Health Organization to raise the FED further.
