ptc worried about inadequate enforcement of track and trace system
Published on: January 23, 2024.
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The Concerns Over the Lack of Track and Trace System Enforcement in the Tobacco Industry
The legal tobacco industry in Pakistan has expressed deep concerns about the lack of enforcement in the track and trace system, which is designed to prevent the sale of illegal and smuggled cigarettes in the country. Senior officials of the industry have raised concerns about the sustainability of the business as the Pakistani markets are flooded with counterfeit and smuggled cigarettes.
Failing Track & Trace System
The Track & Trace System (TTS) implemented by the Federal Board of Revenue (FBR) is failing to effectively address the issue, with a rising incidence of fake stamps being affixed to counterfeit packs of well-known cigarette brands. This has raised serious questions about the efficacy of the track and trace system in Pakistan and Azad Jammu & Kashmir (AJK).
The Decline of Large Scale Manufacturing (LSM)
Data released by the Pakistan Bureau of Statistics reveals that the tobacco industry has faced a decline of around 40 percent in large scale manufacturing (LSM) from July to November 2023. This decline is attributed to the availability of cheap smuggled and counterfeit local brands, which can be found in markets across the country.
According to Qasim Tariq, Senior Business Development Manager at the Pakistan Tobacco Company (PTC), approximately 850 million counterfeit cigarette sticks are currently being sold in Pakistan, equivalent to 42.5 million packs featuring fake stamps. This has resulted in a substantial loss of approximately Rs5.7 billion to Pakistan.
Call for Enforcement Measures
The officials from PTC have urged the Law Enforcement Agencies (LEAs) with jurisdiction to conduct extensive enforcement at the retail level to combat this rising menace. They have called for stronger actions to be taken against the sale and distribution of counterfeit and smuggled cigarettes, in order to protect the interest of the legal tobacco industry and prevent further revenue loss to the country.
The Impact of Illicit Tobacco Trade
The FBR report submitted to the parliamentary committee in 2019 highlighted that illicit cigarette trade accounted for more than 36.2 percent in the country. The officials from PTC have provided evidence of counterfeit cigarette packs with fake track and trace stamps found in the market, further emphasizing the urgency to address this issue.
Conclusion
The lack of enforcement measures in the track and trace system has become a pressing concern for the legal tobacco industry in Pakistan. The availability and sale of counterfeit and smuggled cigarettes have led to significant revenue losses and a decline in large scale manufacturing. Urgent actions need to be taken by the relevant authorities to combat this issue and protect the interests of the legal tobacco industry. By addressing this problem, Pakistan can ensure a more sustainable and regulated tobacco market.
Source: https://newztodays.com
