ISLAMABAD: Multinational tobacco companies have been trying to evade millions of rupees in taxes under the pretext of exaggerated illicit trade of the product in the country, reveals a study. The Centre for Global and Strategic Studies [CGSS] conducted a research study, “Illicit Trade in Tobacco: A Dossier on Contributing Factors and its Global Implications,” to expose the connection between the alleged illicit trade and tax evasion by the multinational tobacco companies. The study found that the companies were using the illegal trade as a smokescreen to avoid taxation and implement international commitments. It is happening because the powerful and vested interest groups are using the excuse of illicit trade to avoid taxes, it added. The study also debunked the impression of 40 to 50 per cent illicit trade volume in Pakistan’s tobacco industry created by MNCs, by saying that the actual volume of the illicit trade was not more than 9 per cent according to a survey.

Source: Pakistan Today April 18, 2021 17:37 UTC