Exponential surge in illicit cigarettes may lead to business shutdown: PTC.

ISLAMABAD -- Pakistan Tobacco Company (PTC) on Saturday said that an exponential increase in illicit cigarettes may lead to a business shutdown.

The official of PTC told the media in Jhelum that a steep decline in the volumes of the legitimate industry and a sharp increase in the sales of illicit cigarettes are being witnessed.

"The impact of rising excise rates is now becoming evident in the market", he added.

The excise increase in February 2023 coupled with the lack of enforcement has amplified the sale of illicit cigarettes including Duty Not Paid (DNP) and smuggled cigarettes.

Sharing the Pakistan Bureau of Statistics (PBS) recent data, he said volumes produced by the legitimate Tobacco Industry had declined by 50 percent in March 2023, which is the first month of sales after the exponential excise rate increase in February, whereas the total Large-Scale Manufacturing (LSM) decline was half of the tobacco...