Tuesday, Sep 8, 2026
English News
  • Hyderabad
  • Telangana
  • AP News
  • India
  • World
  • Entertainment
  • Sport
  • Science and Tech
  • Business
  • Rewind
  • ...
    • NRI
    • View Point
    • cartoon
    • My Space
    • Education Today
    • Reviews
    • Property
    • Lifestyle
E-Paper
  • NRI
  • View Point
  • cartoon
  • My Space
  • Reviews
  • Education Today
  • Property
  • Lifestyle
Home | News | Pakistan Tops Global Illicit Cigarette Market Bat Report

Pakistan tops global illicit cigarette market: BAT report

British American Tobacco said Pakistan has the world’s largest illicit cigarette market, with 55% share. High taxes widened price gaps, boosting illegal trade while failing to cut consumption or significantly increase government revenue, reports suggest

By IANS
Updated On - 18 April 2026, 02:39 PM
Pakistan tops global illicit cigarette market: BAT report
whatsapp facebook twitter telegram

New Delhi: Pakistan has the biggest market of illicit cigarettes in the world, according to Simon Trussler, British American Tobacco (BAT) Group’s Head of International Trade and Fiscal Affairs.

He said that the share of illicit cigarettes in Pakistan has reached 55 per cent, reflecting that Pakistan is a leading country where domestic taxes are evaded to such an extent, reports Business Recorder.


The Federal Board of Revenue (FBR) fully understands the problem and is trying to resolve the issue, but the problem is still very big, he added.

A latest report by Oxford Economics shows that Pakistan’s cigarette fiscal policy has not achieved its intended policy objectives – either from a tax revenue perspective, or in terms of reducing overall cigarette consumption, the report mentioned.

Trussler said higher cigarette taxes have not been successful in reducing the total number of cigarettes consumed in Pakistan.

According to him, overall cigarette consumption has remained broadly flat at 80 billion sticks (since 2012), while the market has tilted sharply toward illicit brands after large tax hikes.

The massive increase in illicit cigarettes has been driven by a combination of demand- and supply-side factors, he mentioned.

Trussler further said that the company has strongly proposed the government to avoid increase in Federal Excise Duty (FED) on cigarettes in budget (2026-27) as consumers are unable to aboard excise shocks.

The rapid increase in the consumption of illicit cigarettes has been, in large part, the consequence of a sudden deterioration in the affordability of legal, tax-paid, brands.

He said the tax hikes resulted in a widening price gap between legal and illicit cigarettes. More than 80 percent of cigarette price increases in Pakistan have been attributable to tax hikes.

The WHO data show that in 2024, the pre-tax price of cigarettes was the 173rd lowest in the world and less than 20 per cent of the global average.

This creates a substantial incentive for domestic manufacturers to operate illicitly, evading local taxes and earning a higher margin, said the report.

 

  • Follow Us :
  • Tags
  • BAT
  • consumption
  • Excise duty
  • FBR

Related News

  • Nashra Sandhu’s six-wicket haul sends Pakistan into Asia Cup semi-finals

    Nashra Sandhu’s six-wicket haul sends Pakistan into Asia Cup semi-finals

  • India thrash Pakistan by seven wickets in Women’s Asia Cup

    India thrash Pakistan by seven wickets in Women’s Asia Cup

  • India to establish unified intelligence grid to counter multi-front security threats

    India to establish unified intelligence grid to counter multi-front security threats

  • ISI plans home-grown honey traps, AI-generated women to target Indians

    ISI plans home-grown honey traps, AI-generated women to target Indians

Latest News

  • Delhi could cut PM2.5 burden by 20 per cent by 2040 if air standards met on time: Report

    1 hour ago
  • Allahabad HC seeks Centre, UP response on Aadhaar-based licence system

    2 hours ago
  • 80-year-old woman found murdered at home in Rajasthan

    2 hours ago
  • World Archery Para Series: India secure multiple finals and assure medals in Ahmedabad

    2 hours ago
  • Tejashwi Yadav urges Centre to declare Bihar floods a national disaster

    2 hours ago
  • EC announces October 6 bypoll for Assam’s Nagaon Lok Sabha seat

    2 hours ago
  • Allahabad HC orders reports from UP, Jaipur Police over accused’s encounter

    2 hours ago
  • Police arrest Bhadrachalam MLA’s PA for duping youths with false promises of employment

    3 hours ago

company

  • Home
  • About Us
  • Contact Us
  • Privacy Policy

business

  • Subscribe

telangana today

  • Telangana
  • Hyderabad
  • Latest News
  • Entertainment
  • World
  • Andhra Pradesh
  • Science & Tech
  • Sport

follow us

  • Telangana Today Telangana Today
Telangana Today Telangana Today

© Copyrights 2024 TELANGANA PUBLICATIONS PVT. LTD. All rights reserved. Powered by Veegam

Telangana Today App