Illicit tobacco trade thrives as TTS fails to help curb violations

KARACHI: Inefficiency of the Track and Trace System (TTS) in the tobacco sector is causing huge losses to the tune of Rs400 billion to the national exchequer every year, industry experts said.

Sharing the Institute of Public Opinion Research’s 2024 (IPOR) findings, they said the unchecked illicit tobacco trade thrives in Pakistani markets.

The study showed compliant brands follow all the requirements stipulated by the Government of Pakistan.

These requirements include having a Track and Trace Stamp, a graphical health warning, a printed retail price, an underage warning, and the manufacturer’s name on the packaging.

These brands are also compliant with the Brand Licensing Regime of the Federal Board of Revenue (FBR) and are sold above the minimum legal price of Rs162.25.

The study further explored that locally manufactured duty-not-paid brands do not comply with one or more of the stipulated requirements by the government.

These brands also fail to comply with the Brand Licensing Regime of the FBR and are sold below the minimum legal price of Rs162.25.

Smuggled brands are completely non-compliant with the requirements. These brands do not have a Track and Trace Stamp and other guidelines lay down by the Government of Pakistan.

Regarding Track and Trace System (TTS) compliance at the point of sale, a total of 413 brands were found in the market. Out of these, only 19 brands had the TTS stamp in all areas. Thirteen brands were found both with and without the TTS stamp. Ninety-five of the brands were locally manufactured and did not have the TTS stamp. Additionally, 286 smuggled brands were found without the TTS stamp.

Industry expert Osama Siddiqi said the economic impact will further deteriorate if these illicit brands remain unchecked.

To solve this issue, he advised the authorities to ensure TTS coverage and routine inspections.

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