Latest news with #Rs415
Business Recorder
5 days ago
- Business
- Business Recorder
Rs415 billion in losses raise alarms over tobacco enforcement
While regulators tighten the noose around Pakistan's formal tobacco sector, the real threat is expanding in plain sight. Illicit cigarette brands—untaxed, unregulated, and widely available—have captured more than half the market. They pay nothing, follow no rules, and yet continue to grow. The law is chasing what is visible, not what is dangerous. The formal industry, despite contributing nearly Rs270 billion in taxes each year, now controls only 46 percent of the market. The remaining share belongs to illegal operators selling cigarettes at a fraction of legal prices. This thriving black market is causing an annual loss of over Rs415 billion revenue that could have supported healthcare, education, or debt relief. Instead, it is being lost to unchecked trade networks and lack of enforcement. Much of the blame lies with those who claimed to champion public health. Campaign for Tobacco-Free Kids and Vital Strategies ran campaigns targeting the regulated industry while staying silent on the illicit trade that now dominates the market. Last year, the government shut down both INGOs for operating without registration, funding local entities without approvals, and engaging in policy circles unlawfully. Their work, once seen as advocacy, is now under scrutiny for policy interference and regulatory evasion. 'This is not about tobacco anymore,' said Fawad Khan, spokesperson for Mustehkam Pakistan. 'It is about survival. When lawbreakers take over the market and face no consequences, the whole system starts to collapse. We are rewarding the illegal and punishing the legal—and everyone in the country is paying for it.' At the same time, the IMF continues to push Pakistan to broaden its tax base and reduce leakages. But fiscal targets cannot be met if entire sectors remain outside the net. Experts argue that unless enforcement expands to include illegal trade, even the most disciplined revenue policies will fall short. The issue is no longer about raising taxes—it is about applying them fairly.
Business Recorder
31-05-2025
- Business
- Business Recorder
Cigarette industry demands effective TTS enforcement
KARACHI: Cigarette industry has urged the federal government for the special measures in the budget for effective enforcement of digital monitoring tools like Track and Trace System (TTS) to collect the billions of rupees additional tax revenue. As per estimates, Pakistan's illicit cigarette market is draining over Rs415 billion annually from the national treasury, shifting an unfair tax burden onto compliant manufacturers, which are the leading tax payer sector in the country. While illegal manufacturers evade taxes and regulatory oversight, legal companies bear nearly all the tax load despite having less than half the market share. This creates a distorted market where legal businesses struggle to compete, and consumers unknowingly support illicit trade through inflated prices and limited product choices. Industry sources said that illicit trade severely disrupts market balance, forcing lawful manufacturers to shoulder disproportionate tax costs. This not only harms the industry's growth but ultimately affects consumers who pay higher prices for taxed products, they added. 'Effective enforcement of digital monitoring tools like Track and Trace is essential to restore fairness and protect government revenues,' they said. Experts warned that if preventive measures are not taken in the upcoming budget, illicit trade will continue to erode government resources needed for public services, hinder economic development, and encourage illegal business practices that undermine the rule of law in Pakistan. Industry experts emphasise that cracking down on illicit trade through enhanced regulatory frameworks can reclaim billions in lost revenue and ensure a level playing field for all stakeholders. They said that the government can earn billions of rupees revenue by fully implementing the track and trace system in the industry. Several commitments have been made in the past to address this issue; however, enforcement actions on the ground have not been taken to curtail the scale of the illicit trade. In absence of the full implementation of the Track and Trace system, illicit operators are growing freely and depriving the national exchequer of much-needed billions of rupees revenue. Copyright Business Recorder, 2025
Express Tribune
24-05-2025
- Business
- Express Tribune
Prices soar ahead of budget announcement
As the federal budget for the fiscal year 2025-26 approaches, the prices of essential food items in the open market have begun to rise sharply. Shoppers and vendors alike are reporting noticeable increases in the cost of basic commodities such as sugar, flour, rice, pulses, cooking oil, and ghee. The supply of these goods has also reportedly decreased, compounding the problem and fuelling further speculation over price hikes. Market sources suggest that traders have begun stockpiling items that are expected to be taxed at higher rates in the new budget. This hoarding is contributing to artificial shortages and pushing prices upward across multiple categories of daily necessities. According to current market trends, the price of live chicken has reached Rs415 per kilogramme, while chicken meat is selling at Rs650 per kilogramme. Eggs, previously priced at Rs270 per dozen, have risen to Rs290. Mutton is being sold at Rs2,400 per kilogramme, and beef at Rs1,400 per kilogramme. Fresh milk is now Rs220 per litre, and yogurt is available for Rs240 per kilogramme. Grains and pulses have also seen substantial increases. Rice is priced at Rs400 per kilogramme, split chickpeas at Rs380, and white chickpeas at Rs390 per kilogramme. Cooking oil and ghee are being sold at Rs510 and Rs500 per packet, respectively. Vegetables and fruits are similarly affected. Potatoes, onions, and tomatoes are now selling at Rs50 to Rs60 per kilogramme. Garlic is priced at Rs200, ginger at Rs600, and lemons have reached Rs800 per kilogramme. Green chilies are available at Rs150 per kilogramme, while a bundle of fresh coriander is being sold for Rs30. Among other vegetables, okra is priced at Rs160 per kilogramme, arvi at Rs200, radish at Rs40, and peas at Rs200 per kilogramme. Seasonal fruits have also experienced an uptick. Apples range between Rs300 to Rs350 per kilogramme, guavas at Rs200 to Rs250, apricots and loquats at Rs200, and mangoes between Rs200 to Rs300 per kilogramme. Watermelons are being sold at Rs50 per kilogramme, while melons and cantaloupes are priced at Rs100. Peaches are fetching Rs200 to Rs300 per kilogramme, cherries at Rs300 per box, and bananas at Rs200 to Rs240 per dozen. Consumers fear that these prices may rise even further once the budget is formally announced, as uncertainty over new tax policies and supply disruptions continue to drive inflation in household goods.
