PMI's Top Boss, concerned over recent excise hike.

Mohammad Zeeshan, CFO, Philip Morris (Pakistan) Limited addresses a media iftar in Karachi

Sales of illicit cigarettes have gone up 'massively' after multiple increases in the federal excise duty (FED) in recent months, said Philip Morris Pakistan Ltd chief financial officer Muhammad Zeeshan.

Talking to a group of journalists, the representative of one of the two largest cigarette sellers in Pakistan said the illegal trade of sticks was hurting the documented sector and denting the government's tax revenue.

'Whenever the tax on legal cigarettes increases, the sale of illegal cigarettes also rises,' he said.

The government has increased the FED three times in the current fiscal year. It increased by 25 per cent in June and August and by 150pc in February. With the latest increase, the excise duty on cigarettes has gone up to 200pc.

According...