ISLAMABAD STAFF REPORTER
Pakistan Tobacco Company (PTC) has welcomed the government’s recent enforcement actions against the illicit cigarette trade and urged authorities to continue these operations on a sustained basis.
During a media briefing, PTC officials revealed that law enforcement agencies seized more than 17 billion illicit cigarettes and raw materials used in cigarette manufacturing during 2025. They noted that the illicit cigarette industry has expanded at an alarming scale.
According to the company, illegal operators have now established covert micro-production sites, operating from farms, rice mills, and underground factories. These illegal units are causing massive losses to the national exchequer through tax evasion.PTC emphasized that in order to effectively curb tax evasion, the entire cigarette industry supply chain must be regulated, including raw materials, manufacturing processes, and transportation and distribution networks.
The company highlighted that current tax policies have made legal cigarettes increasingly expensive, pushing consumers towards cheaper illicit brands. The increase in Federal Excise Duty has not only fueled the growth of the illicit trade but has also led to a surge in the smuggling of acetate tow, a key raw material used in cigarette production.PTC officials stated that the government has seized more than 500 tons of acetate tow over the past year. Despite these efforts, cigarettes without track-and-trace tax stamps are still widely available in the market.Concluding the briefing, Pakistan Tobacco Company stressed that only a balanced and rational tax policy can strengthen the economy and effectively counter the illicit cigarette trade.