Islamabad: Ipsos Pakistan has launched a survey titled ‘Pakistan Cigarette Market Assessment 2024’ in Islamabad. The report presents a comprehensive survey of more than 1,000 retail outlets in four provinces of Pakistan, including urban and rural areas. Key findings indicate significant changes in market dynamics, including a projected decline in the market share of legal cigarette brands and an increase in illegal brands, with significant implications for national income and the sustainability of legal activity.
Across Pakistan, the easy availability of cheap and duty-free cigarettes, non-compliance with the Track & Trace system, sale of cigarettes below the Minimum Legal Price (MLP), price differentials and many other crises brought the cigarette industry to its knees, but $30,000 annually with the loss of that bit national treasury.
When Ipsos visits shops in these regions, it investigates the availability and prices of smuggled cigarette brands and assesses market share, Track & Trace (T&T) and minimum legal price (MLP) compliance, price differentials and new prices. market trends. Ipsos then provides an analysis of the data collected from the market in this area. In addition, due to increased performance, control tests were also performed on the sample to confirm the results.
“6 brands are included in the list of track and trace every year, but there are many cases of the same brand sold without a brand. However, the non-implementation of Track and Trace is 37 brand news, reaching a total of 165 brands, there is no track and trace in the market .
The study revealed that as many as 104 brands of cigarettes are sold below the MLP and 45 brands of illicit goods are sold above the MLP in Pakistan, again revealing the failure of the relevant authorities. “53% of the cigarette brands in the market are priced below MLP,” said the study.
A survey conducted to highlight the huge disparity in the market showed that a locally produced tax evasion packet of a popular brand was sold in the market for $120, while a packet of another popular smuggled brand was priced at $10,000. 165. Both brands are readily available in the region under review. Conversely, the most popular tax-paying brands on the market range between $220 and $550. Almost 95% of the cigarette market is Rs. 65 to Rs. 220 units per package
Most of the locally produced tax exempt brands are also available in 25 and 30 pack cigarettes, the study said. This provision not only encourages sellers to sell sticks, but also provides additional financial incentives in the form of discounts.
While providing general market projections, the study said illegal factories and smugglers will continue to capture the market, while tax-paying brands will continue to suffer.
Analyzing the overall situation, the study said consumers are changing from duty-free to locally produced tax-evading and smuggled cigarette brands, so the illegal share of all 48% registered in the Ipsos syndicate survey last year. expected to reach
Summarizing the research scenario, “Cigarette companies in Pakistan sell 79-81b sticks annually. This means that around 2.5b packs of cigarettes escape the tax net. This tax evasion causes the national wealth to lose 300 billion dollars a year.”
