Latest news with #TariqJunaid
Express Tribune
23-05-2025
- Express Tribune
'55% of local cigarette producers evade taxes'
Listen to article The Institute for Public Opinion and Research (IPOR) released its research report today during a press briefing in Lahore. The report sheds light on the alarming rise in the illicit cigarette trade across Pakistan and the gaps in enforcing existing tobacco control laws. During the briefing, IPOR Executive Director, Tariq Junaid revealed that more than 54% of cigarette brands available in the market are in blatant violation of national laws, particularly the Track and Trace System (TTS) and Graphical Health Warnings (GHWs). He highlighted that despite the implementation of GHWs in 2009 and TTS in 2022, enforcement has been practically non-existent, creating space for the illegal trade to thrive. Cigarette packs without health warnings and without TTS stamps are openly being sold in the market. He pointed out that although legislation introduced in 2019 mandated that 60% of each cigarette pack must display a graphical health warning, six years later, 286 brands are still openly sold without any health warnings. This, he noted, is a clear breach of the law. Junaid added that, much like in other areas, the Track and Trace System appears to have failed in curbing these violations. According to the report, a survey was conducted across 1,520 retail outlets in 19 districts, identifying 413 different cigarette brands being sold. Alarmingly, only 19 brands were found to be compliant with TTS requirements while 394 brands were found without stamps. The vast majority lacked tax stamps and the legally mandated health warnings. Moreover, 332 brands were being sold below the legal minimum price of Rs162.25, with some priced as low as Rs40 — posing not just a regulatory challenge but also causing significant loss to government revenue. The report further disclosed that 55% of illicit cigarettes are produced locally without paying taxes, while 45% are smuggled from abroad. This unchecked illegal trade is causing an estimated annual loss of over Rs300 billion to the national treasury. During the session, Junaid also responded to questions related to tobacco sector regulations. He stressed that each time the government increases tobacco taxes, illegal cigarette sellers are the primary beneficiaries, as the lack of enforcement drives consumers toward cheaper, illicit tax-evading alternatives. He urged the government to take immediate and decisive action by enhancing monitoring of retail outlets nationwide, ensuring full compliance with TTS and GHWs by all manufacturers, and launching a coordinated national crackdown on the illegal cigarette trade. These actions, he stated, are critical not just for ensuring legal accountability but also for safeguarding state revenue and maintaining fair business competition. Junaid warned that this is not merely a regulatory shortfall, but a serious economic and legal crisis that demands urgent, integrated, and effective government intervention.
Express Tribune
22-02-2025
- Business
- Express Tribune
Over 400 cigarette brands in violation of rules: study
Listen to article A new study conducted by the Institute for Public Opinion Research (IPOR) has uncovered a concerning lack of compliance with tobacco control regulations in Pakistan. The report was launched by Tariq Junaid, Executive Director of IPOR, on Friday. The study, which surveyed 1,520 retail outlets across 19 districts, identified over 413 cigarette brands available in Pakistan. Among these, only 19 brands were fully compliant with the Track and Trace System (TTS), 13 were partially compliant, 95 featured the Graphical Health Warning (GHW), and 286 lacked both the tax stamp and the GHW. Although the mandatory implementation of GHWs was introduced in 2009, even after 16 years, cigarette packs without the required larger warnings continue to be sold without any government enforcement. The study also revealed that compliance with the TTS, introduced in 2021 as a key measure to curb illicit cigarette trade, remains highly inadequate. Over 54% of cigarette brands available at points of sale were found to be non-compliant. Among these non-compliant brands, 45% were smuggled brands, while 55% were locally manufactured duty-not-paid brands. Additionally, the study found that 332 brands were being sold below the legal minimum price of Rs162.25, with some available for as little as Rs40. This rampant violation of minimum price results in significant revenue losses for the government. "The high prevalence of non-compliant and smuggled cigarettes deprives the government of much-needed revenue," said Junaid. "The situation needs immediate redressal to curb this revenue loss through strict point-of-sale enforcement," he added. The study found that non-compliance was more prevalent in rural areas (58%) compared to urban areas (49%). This underscores the need for targeted enforcement efforts in rural markets, where illicit products are more prevalent. While 77% of retailers surveyed were aware of the TTS system, 60% reported facing no issues in selling non-compliant brands to consumers. This indicates a lack of effective point-of-sale enforcement, which is crucial for deterring the sale of illicit tobacco products. IPOR called on the government to strengthen enforcement efforts and impose existing penalties. The organisation also urged tobacco manufacturers and retailers to play their part in ensuring compliance with all relevant regulations.
