Islamabad, Pakistan, June 18, 2026: Muhammad Amin, Chairman of Fair Trade in Tobacco Pakistan, has called upon the federal government to reject every form of political pressure that may weaken enforcement against the illegal cigarette trade and the illegal cigarette mafia.
Referring to recent statements made on the floor of the National Assembly by Honorable Members Asad Qaiser on June 14, 2026, and Shahram Khan Tarakai, Amin said parliamentary debate is legitimate and necessary, but it must be grounded in verified records. Statements that blur the distinction between farmers, processors, manufacturers, and illegal operators can misdirect public debate and weaken measures designed to document the tobacco economy.
“The government must listen respectfully to elected representatives, but it must not allow inaccurate claims or political pressure to dilute lawful enforcement,” Amin said. “Pakistan needs a level playing field in which legal businesses pay taxes, farmers receive fair treatment, and illegal manufacturers and traders are brought within the law.”
He clarified that the frequently cited Rs. 390-per-kilogram amount is not an additional tax burden payable by tobacco farmers. According to FTT, it is an advance-adjustable measure applied at the manufacturer. Presenting it as a direct levy on farmers, or suggesting that farmers themselves are required to pay it, is incorrect and creates unnecessary confusion.
Amin said the Honorable MNAs, Shahram Khan Tarkai and Asad Qaiser raised nearly the same issue but did not talk facts. He urged all public representatives to distinguish genuine farmer concerns from regulatory measures aimed at monitoring manufacturers and documenting commercial transactions.
Amin further recalled that Asad Qaiser had advocated in 2018 for the reversal of advance Federal Excise Duty. FTT said that measure was important for documenting parts of the tobacco economy operating outside the formal tax system. Weakening documentation measures, Amin warned, creates room for unrecorded production, tax evasion, and illegal market expansion.
The FTT Chairman also cited official revenue figures to challenge claims made during the parliamentary debate.
According to the Ministry of Finance, Revenue Division Yearbook 2023-24, the cigarette sector contributed approximately Rs. 294 billion in taxes during FY 2023-24, with almost 98 percent reportedly paid by the legal cigarette industry. For FY 2024-25, FTT cited the Ministry of Finance, Revenue Division Yearbook 2024-25 and placed the sector’s tax contribution at approximately Rs. 265 billion, not Rs. 165 billion.
“These differences are not minor,” Amin said. “Incorrect figures can produce incorrect policy. When pressure is concentrated on compliant businesses while the illegal market remains under-enforced, legal market share declines, illegal trade expands, and national revenue suffers.”
FTT estimates that the illegal cigarette mafia causes nearly Rs. 400 billion in annual tax losses. The organization believes the wider value of the illegal cigarette trade may be three to four times the tax loss, potentially approaching Rs. 1,000 billion.
Amin warned that such a large undocumented economy also creates national-security concerns. There is no transparent record of where the proceeds of illegal cigarette production and distribution ultimately go, who controls them, or how they are used. These funds could enter money-laundering channels, finance organized crime, or create terror-financing risks. Such possibilities require investigation, not political protection or regulatory retreat.
He respectfully called upon the Prime Minister, the Government of Pakistan, the Federal Board of Revenue, and all relevant enforcement institutions to continue coordinated action against illegal manufacturing, non-duty-paid cigarettes, undocumented tobacco processing, smuggling, and tax evasion.
“Pakistan must stop the revenue leak, protect lawful trade, and strengthen documentation,” Amin concluded. “The government should reject pressure from every quarter and continue using the full authority of law against all forms of illegal tobacco trade.”