Seized cigarettes lacking valid tax stamps, or with fake ones, will be confiscated and destroyed, with seizures reported to the FBR within 48 hours using a newly developed application. The move is aimed at curbing illicit cigarette trade and ensuring compliance with excise regulations across Pakistan.

The post Pakistan Empowers Provincial Officials to Seize Illicit Cigarettes first appeared on Tobacco Reporter.

Farmers pointed to rising input costs, with tobacco cultivation costing up to Rs1.9 million ($6,650) per hectare, compared to around Rs300,000 ($1,050) for wheat. “If tobacco prices drop, farmers risk losses in the hundreds of thousands,” said former Pakistan Tobacco Board (PTB) director Muhammad Ayaz.

MIP rates include:

• Flue-cured Virginia: Rs545/kg ($1.91) (plains), Rs615.9/kg ($2.16) (sub-mountainous areas)
• White Patta: Rs262.6/kg ($0.92)
• Barley: Rs316/kg ($1.11)
• Dark air-cured: Rs388.9/kg ($1.36)
• Naswar/snuff/hookah: Rs262.6/kg ($0.92)
• Sun-cured Virginia: Rs350.2/kg ($1.23)

The post Pakistan Sets Prices to Stabilize Tobacco Crop first appeared on Tobacco Reporter.

The court emphasized that the right to trade is constitutionally protected and questioned the legitimacy of enforcing restrictions without a legal basis. It ruled that no action can be taken against vape businesses until relevant legislation is enacted.

On June 3, Chief Minister Maryam Nawaz announced a provincial ban on e-cigarettes and ordered vape shops to be sealed. Weeks later, LHC Justice Anwar Hussain said the government failed to justify the crackdown legally and issued a stay order, halting further action until a final decision is made.

The post Pakistani Vape Vendors Accuse Govt of Harassment as Court Case Proceeds first appeared on Tobacco Reporter.

“Once the tobacco plant falls to the ground, its leaves are no longer useful for curing, causing growers huge losses,” said Safdar Khan, a farmer from the Maneri Bala village, adding that the government didn’t come to their aid after being struck by a natural calamity.

Swabi produces about 53% of KP’s tobacco output, with an estimated 15,500 hectares planted, last year producing about 42 million kg.

“Due to the damage to our crop, we are stuck in an economic quagmire, and there is no one to help us,” said local grower Baswar Khan.

The post Pakistan’s Largest Tobacco Growing Region Suffers Huge Storm Damage first appeared on Tobacco Reporter.

For fiscal year 2024–25, WHO estimated cigarette production in Pakistan reached 37 billion sticks, generating Rs 208 billion ($728 million) in FED revenue. With excise duty unchanged, cigarette output is projected to rise to 38 billion sticks in 2025–26, yielding Rs 217.6 billion ($762 million) in revenue.

WHO says a Rs 39 ($0.14) per pack FED increase would reduce smoking by 10.7%, lower production to approximately 34 billion sticks, and increase revenues by 20.9%.

The post WHO Wants Pakistan to Raise Cigarette Taxes first appeared on Tobacco Reporter.

Justice Anwar Hussain said the government failed to justify the crackdown legally and issued a stay order halting further action until a final decision is made. The Punjab government has until July 3 to submit a formal reply.

The vape shops were sealed following a provincial ban on e-cigarettes announced on June 3 by Chief Minister Maryam Nawaz to “protect youth health.” Petitioners claim the ban is unconstitutional and violates their right to lawful business.

The post Pakistan Ordered to Reopen Vape Shops  first appeared on Tobacco Reporter.

The university is being funded by £190 million returned by the UK in a corruption case, with the new tobacco levy intended to support its ongoing expenses. Bids for design and implementation were recently opened, mainly involving firms from China and Turkiye.

PM Sharif emphasized global education standards, calling for smart boards, e-libraries, and a world-class digital library. He also urged fast-tracking the project and expanding Daanish schools across underserved regions.

The post Pakistan to Fund University with Tobacco Levy first appeared on Tobacco Reporter.

While MIPs serve as a price floor to protect tobacco farmers—particularly when supply exceeds demand—they are not support prices and do not involve government subsidies.

The ECC noted that shifting to market-driven pricing aligns with the broader government policy of phasing out price controls in favor of demand-and-supply dynamics. However, concerns were raised that cess (a local tax on tobacco), calculated as a percentage of MIPs, could be reduced if open market prices rise above government-set minimums.

Despite approving revised MIPs for various tobacco types for the 2025–26 fiscal year, the ECC emphasized the need for further deliberation before dismantling the current system. The Ministry was instructed to develop a comprehensive transition plan and present it to the ECC in due course.

The post Pakistan Shifting Toward Open Market Tobacco Pricing first appeared on Tobacco Reporter.

The provision for withholding tax rates under Section 153 of the Income Tax Ordinance will be changed to charge the new tax on the gross amount of payment received by distributors when they hand over cigarette sticks to retailers.

It was previously reported that Pakistan’s government was facing pressure from the World Health Organization to increase its FED further.

The post Pakistan Increases Tobacco Tax 240% first appeared on Tobacco Reporter.

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.