The government has taken several steps by increasing taxes on cigarettes to minimize the budget deficits and to achieve its revenue targets in the short/medium term. However, the rise in tax on heavily taxed legal cigarettes sector will pave the path for illegal manufacturers to cell cigarettes without paying taxes to the government. Instead of simply increasing taxes on the legal and documental cigarettes sector, the authorities should tax legal cigarette manufacturers through effective enforcement of a track and trace system. This, of course, helps the government in achieving its revenue targets even more in long run.

QURAT UL AIN,

Lahore.