ISLAMABAD: Tobacco companies have sought action against unbranded tobacco producers.

In a letter to the industries ministry, tobacco manufacturers referred to a study ‘Asia-11’, conducted by the Oxford Economics, which highlights that consumption of total illicit cigarettes is 25.4 per cent in Pakistan.

While share of domestic illicit cigarettes is up to 21.9pc the rest accounts for smuggled cigarettes. “This makes Pakistan a market of 19 billion locally produced duty-non-paid cigarettes annually, which is among the highest globally,” the survey added.

It highlighted that several localised brands are growing at a fast pace in many cites of Punjab at a retail price much lower than the minimum price established by the government.

The letter by the cigarette manufacturers stated that the government was targeting legal brands by increasing taxes and other social restrictions but none of such bindings are being followed by cigarette manufacturers in the informal sector.

The letter highlighted that the rapidly growing business resulted in tax revenue loss of about Rs27bn in 2012.

It has been suggested that strict penalties be imposed on persons involved in manufacture, distribution and sale of illicit tobacco brands.—Reporter