Daily The Destination
Date: June 17, 2025
Islamabad — The debate around smoking in Pakistan is heating up once again. On one side are the NGOs demanding higher taxes on cigarettes in the name of public health. On the other, the powerful tobacco industry and their political allies, who remain unfazed — because tax hikes barely scratch the surface of their real operations.
“Raise the Tax” – But Who’s the Real Culprit?
For years, NGOs have rallied around the slogan of increasing cigarette taxes, claiming it would reduce smoking. But this one-dimensional narrative masks a far more complex and hidden reality.
Meanwhile, the tobacco barons and their political backers show little resistance — not because they support health reforms, but because they’ve already found ways to dodge the system. Massive tax evasion, fake invoicing, and unregistered manufacturing have turned this industry into a mockery of Pakistan’s tax laws.
The Rise of Illegal Cigarettes — A Failure of the State
An estimated 40–45% of the cigarette market in Pakistan is dominated by illegal brands — brands that pay zero taxes, operate outside government oversight, and flood markets with cheap, easily accessible cigarettes. These unregulated products are openly sold in shops, especially in rural areas, luring youth and low-income individuals into addiction.
Farmers Caught in the Crossfire
It’s not just about lost tax revenue. Tobacco farmers are also casualties of this corrupt system. With no subsidies or price protections from the state, many sell their crops to illegal manufacturers who keep no records and report nothing to authorities. These farmers are dragged into the shadows of an unregulated economy, left without legal safeguards or fair compensation.
From Tax Fraud to Foreign Mansions — The Bigger Picture
As taxes go up, so does illegal profit — much of it laundered and funneled abroad. The billions made through tax evasion fund luxurious real estate in Dubai, London, and Malaysia. This is not just tax fraud — it’s economic sabotage. A parallel economy is thriving while the state bleeds resources.
Tobacco Tycoons, Politicians & NGOs — A Silent Alliance?
Analysts believe a convenient alliance exists between illicit cigarette manufacturers and corrupt politicians who shield their operations. At the same time, some NGOs focus solely on tax hikes, ignoring the fact that without cracking down on illegal trade, their “high-tax solution” is practically meaningless.
If the Goal is Health, Not Headlines…
Then tax hikes alone won’t fix anything. What’s needed is a multi-pronged, enforceable strategy, including:
Crackdown on illegal cigarette manufacturing and distribution
Full implementation of track-and-trace systems
Formal integration of tobacco farmers into the economy
Activation of anti-money laundering mechanisms
Without these reforms, higher taxes are nothing more than window dressing — a deceptive fix to a deep-rooted crisis.
In Pakistan, reducing smoking rates demands more than policy papers. It demands genuine intent, political will, and real action. Until the unholy nexus of tobacco moguls, corrupt politicians, and self-styled health advocates is broken, both public health and the economy will remain hostage.
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