According to market sources, Pakistan is losing Rs. 300 billion in tax income annually as a result of the increase in illegal cigarette sales, which currently make up more than 50% of the market.
Legal cigarette sales have plummeted, falling from 7.1 billion sticks in July-September of last year to 6.3 billion sticks in the first quarter of current fiscal year alone, a loss of 80 crore sticks.
Major brands have also been affected by the slump; one Tier 1 brand’s yearly sales have fallen from 66 crore sticks to 30 crore. Market sources predict that by year’s end, sales of legal cigarettes will have dropped by an additional Rs. 4 billion.
