Saturday, Nov 7, 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.

 

Join Our Whatsapp Channel
  • Follow Us :
As preferred source
  • Tags
  • BAT
  • consumption
  • Excise duty
  • FBR

Related News

  • Peshawar school roof collapse kills 17 children, teacher; 30 injured

    Peshawar school roof collapse kills 17 children, teacher; 30 injured

  • Glass facades prove fatal to migratory Indian Pittas in Hyderabad

    Glass facades prove fatal to migratory Indian Pittas in Hyderabad

  • India warns of fitting response to any terror attack by Pakistan

    India warns of fitting response to any terror attack by Pakistan

  • Pakistan-made cosmetics worth Rs 7 lakh seized in Hyderabad, wider network suspected

    Pakistan-made cosmetics worth Rs 7 lakh seized in Hyderabad, wider network suspected

Latest News

  • Delhi steps up road-cleaning drive as MCD awaits new mechanised sweepers

    6 minutes ago
  • Hyderabad aims to become international fintech and financial services hub, says Sridhar Babu

    11 minutes ago
  • No evidence of age fraud against Mithun Manhas, says police report

    14 minutes ago
  • Niranjan Reddy visits dried-up paddy fields of Congress ward member in Wanaparthy

    17 minutes ago
  • Laxmi Ratan Shukla rues Mohammed Shami’s missed India Test comeback before retirement

    35 minutes ago
  • How did Revanth Reddy’s family businesses grow so fast, asks BRS

    49 minutes ago
  • Hardik Pandya misses Syed Mushtaq Ali Trophy as Baroda announce squad led by Krunal

    51 minutes ago
  • Tamil Nadu sanctions Rs 2,000 crore for free laptop scheme

    1 hour 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