Illegal cigarettes costing national kitty dearly

Growing tax evasion, counterfeiting and smuggling in cigarette industry are costing the national kitty dear.

According to the Federal Board of Revenue statistics collected by this scribe, taxes and duties evaded by illegal cigarette manufacturers over the last seven years reach over Rs55 billion.

During the last fiscal year, the government lost Rs10 billion to illegal cigarette industry in the shape of Rs7 billion tax evasion, Rs1billion counterfeiting and Rs2 billion smuggling.

Cigarette-related tax evasion totalled Rs6.5 billion in 2010, Rs6.5 billion in 2009, Rs6 billion in 2008, Rs5.6 billion in 2007, Rs5.5 billion in 2006 and Rs4 billion in 2005.

Likewise, counterfeiting in cigarette industry cost the exchequer Rs1 billion in 2010, Rs1 billion in 2009, Rs0.25 billion in 2008, Rs0.24 billion in 2007, Rs0.10 billion in 2006 and Rs0.48 billion in 2005.

As for cigarette smuggling, national revenue loss was Rs2 billion in 2010, Rs1.5 billion in 2009, Rs1.22 billion in 2008, Rs1.34 billion in 2007, Rs1.22 billion in 2006 and Rs1.4 billion in 2005.