Pictorial warning on packs: demand for smuggled, counterfeit cigarettes may surge

The demand for smuggled and counterfeit cigarettes may surge in the country following display of pictorial warning (depicting lip cancer) by the local cigarette manufacturing companies in the light of Ministry of Health's directives.
Smokers particularly those who take cigarettes just to enjoy a company are showing reluctance to buy a pack of cigarette containing pictorial warning. Instead they are purchasing cigarettes from foreign companies that do not display any pictorial warning.
Market sources told Business Recorder on Monday that old stocks of cigarettes with warning in words is still available in the market and buyers are insisting to buy that one. Those who buy new pack, remove the pictorial warning. It is pertinent to mention that the counterfeit cigarette packs do not carry pictorial warning whereas smuggled cigarettes are supplied in the local market with warning in words in English language.
According to the industry sources, one out of the five cigarettes sold in Pakistan is either manufactured or smuggled without paying due taxes, resulting in annual loss of over Rs 8 billion to the government kitty. The cigarette industry is paying about Rs 50 billion on account of different taxes like excise tax, sales tax and tobacco development cess. The cigarette industry is already overburdened in term of taxes and because of higher prices; it is incapable to compete illicit trade. The industry, in case of further taxes on account of generating funds for the flood affected people, could further push down sale of local cigarettes, the industry sources claimed.
All Pakistan Markazi Union of Cigarette and Mashroob Retailers' Vice President Muhammad Mobin Yousaf claimed many other things like chewing tobacco, gutka, and betel nut (sipari) cause oral cancer, as these are kept in mouth for long time while smoke don't stay in mouth and just inhaled. There is no co-relation between smoke and oral cancer, he said, adding smoking could affect lungs rather than lips.
Mobin Yousaf said the Ministries of Health and Industry should review the matter and replace the pictorial warning based on facts. He said the government was suffering huge financial losses under the head of different taxes because of counterfeit and smuggled cigarette while the pictorial warning could further push demand for such cigarettes. He said that his Union has written letters to Federal Minister for Health, Federal Secretary Health and Tobacco Control Cell of the Ministry of Health and asked for reviewing the policy of pictorial warning on cigarettes pack.