October 16, 2024

Capital Calling concerned over illicit trade of tobacco products in Pakistan

Dr Hassan Shehzad

Teaches Data Journalism and Public Diplomacy.

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Capital Calling, an Islamabad-based think tank, has expressed concern on the findings of the World Health Organization (WHO) stating that “illicit trade market in Pakistan (of tobacco products) ranges from 9 to17 percent of the total cigarette market.”

The study is titled “Study on Incidence of Illicit trade of cigarettes in Pakistan: A case study for Islamabad Capital Territory”. The disturbing findings if the study is that “Overall, the illicit trade of cigarettes in Pakistan accounted for 23.1% of the total trade. Locally produced cigarettes without a stamp of the tax authority are considered illicit products and account for 10.4% of the total number of packs.”

Dr Hassan Shehzad from International Islamic University Islamabad (IIUI) says in a discussion of researchers that in a recent meeting of WHO titled “Global meeting to combat illicit tobacco trade concludes with decisive action”, it was presented that “Illicit trade accounts for about 11% of total global tobacco trade, and its elimination could increase global tax revenues by an estimated US$ 47.4 billion annually.”

Hence, he said, the volume of illicit trade in Pakistan is double than global average. He also said that the government should take corrective measures to stop this practice. He said the multinational cigarette companies that operate in Pakistan have been found involved in many illegal activities in different parts of the world. One of the companies was recently fined heavily for such practices in its home country, he said.

He said the WHO report is a cause of concern for everyone and at the same time it refutes the inflated claims of illicit trade that have been pedalled around in the society. It seems, he said, that some vested interest groups spread lies about illicit trade of tobacco products to create so much confusion on this matter that the government is pushed into an overreaction on this count. This overreaction will lead to diversion from the main issue, which, he said, is taxing tobacco as per the international standards.

He said both the illicit trade and lower taxes on tobacco products are playing havoc with public health. The government should work on both these points at the earliest, he said.