Tax experts have called on the Federal Board of Revenue (FBR) to investigate allegations that multinational companies are importing cigarettes that may also contain smuggled, non-custom paid cigarettes.

Although Pakistan imported over 15,000 metric tons of tobacco and tobacco products in the past year, not all foreign cigarettes sold in the country are labelled as imports. Smuggled cigarette brands often lack the required Urdu health warning or pictorial warning, and the government has been taking measures to crack down on smuggling and encourage legitimate imports to support the local economy.

Consumers have reported paying extra for what they believe to be a superior imported product, but there is no actual difference in quality between Pakistani and imported cigarettes. Dr. Rashid, an economist, explained that if a company labels a smuggled product as imported, they can easily charge a premium price without paying any taxes to the government.

While there is a niche market for smuggled products, Dr. Rashid believes that customers would still buy Pakistani-manufactured cigarettes at a higher price if taxes were increased.