Illicit cigarette industry: Govt likely to announce support to small shopkeepers

ISLAMABAD: The government is expected to announce support and assistance to small shopkeepers across the country to compete with the illicit cigarette industry as well as expensive tobacco products after the mini-budget in February 2023.

The associations of such small shopkeepers gathered on Tuesday at the federal capital to discuss the short-term and long-term impact of tobacco taxation on their day-to-day businesses.

They argued to ensure the success of small shopkeepers amid the implementation of high tobacco taxes, the government should provide adequate support and assistance.

This could include targeted financial assistance programmes, training initiatives, and marketing support to help small shopkeepers adapt to changing consumer demands and capitalize on emerging opportunities in the market. By investing in the development and growth of small businesses, the government can empower shopkeepers to thrive in a tobacco-tax-driven environment.

These shopkeepers are facing numerous challenges, including competition from larger retail chains and economic uncertainties. The implementation of high taxes on tobacco products can bring significant advantages to small shopkeepers across Pakistan, ultimately leading to a more prosperous future for them and their communities, they opined.

They also pointed out that the imposition of high taxes on tobacco can effectively deter the illicit trade of tobacco products, which often undermines the sales of legitimate retailers, particularly small shopkeepers. Illicit trade not only deprives the government of tax revenue but also creates an uneven playing field for small businesses.

By curbing the availability of cheap, illicit tobacco products, high taxes can help level the playing field, allowing small shopkeepers to compete fairly and sustain their businesses.

By generating revenue, reducing illicit trade, promoting healthier alternatives, and encouraging social responsibility, small shopkeepers can seize new opportunities for growth and sustainability. It is essential for the government to recognize the importance of small businesses and provide the necessary support and assistance to help them navigate these changes successfully.

Through collaboration and collective efforts, we can create an environment where small shopkeepers not only survive but thrive in a prosperous Pakistan.

Copyright Business Recorder, 2023