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High tobacco taxes in Pakistan push smokers to illegal products, costing the government billions annually.
A new report in Pakistan warns that high taxes on tobacco are driving consumers to cheaper, illegal products, costing the government up to Rs300 billion annually.
Tax experts say this undermines revenue and encourages illicit trade, shrinking the formal sector.
The government is urged to balance tax policy and enforce laws better to curb losses and boost legitimate trade.
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Los altos impuestos al tabaco en Pakistán empujan a los fumadores a productos ilegales, costando al gobierno miles de millones al año.