Cigarette tax myths and realities

A well-orchestrated campaign advocating for reduced cigarette taxes has recently gained momentum, primarily driven by the cigarette industry.

Their arguments crystallize into three core assertions: First, they contend that the prevailing tax structure is crippling large-scale manufacturing, including cigarette manufacturing sector, as evidenced by the 1.9% contraction in the Quantum Index of Manufacturing (QIM) reported by the Pakistan Bureau of Statistics.

Second, they allege that elevated cigarette taxes have precipitated an alarming surge in the illicit cigarette trade, severely eroding the legitimate market. The recent claim is that the illicit cigarette trade has reached 54%.