Tobacco taxation is a key tool to reduce consumption, yet Pakistan’s system remains undermined by inefficiencies in tax collection. The Federal Board of Revenue relies on manufacturers’ self‑declared production, leaving room for under‑reporting and tax evasion in the absence of effective audits. SPDC’s report Estimating the Under‑Reporting of Cigarette Production in Pakistan quantifies these discrepancies, assesses their fiscal impact, and highlights how they weaken excise policy. The study offers recommendations to strengthen monitoring, enforcement, and tax administration.
