Karachi
April 25, 2021
KARACHI: The capacity to raise revenue from taxes is a fundamental requirement for the functioning of any nation.
One clear and immediate target for increasing revenue collection is Pakistan’s illicit trade. A recent report by Harvard economists revealed that the top 12 commodities smuggled into the country are worth as much as USD 3.3 billion a year, and growing. These commodities range from cellphones and fuel to daily use items such as toiletries and tea. As many as 300,000 tonnes of textiles were also smuggled into the country, according to the report.
When diving deeper into the case of Pakistan’s hefty tobacco industry, it becomes clear that cigarettes are, unfortunately, a regular part of the lives of millions of Pakistanis. The total market size of the tobacco industry is estimated at 81.2 billion sticks per year. Unfortunately, the sector is divided into two main categories; the legitimate, and the illegal. The legitimate market ....