How can government expand tax revenue? | Breakdown

Added: 2026-05-16

[00:00:00]The government is trying to curb illegal trade by improving and increasing enforcement across Pakistan.

[00:00:07]Perhaps this is why these 2025 law enforcement agencies confiscated more than 15 billion cigarette sticks worth approximately ₹85 billion. But to counter increased enforcement, manufacturers have also shifted to unorthodox measures. Where the government is regulating markets and illegal factories.

[00:00:28]Cigarette manufacturing is being done in homes.

[00:00:32]Where the government is increasing control over cigarette manufacturers across the country. At the same time, the legal industry is also strengthening its networks through money laundering and its illegal business.

[00:00:41]In a nutshell, the tobacco sector is a case study in Pakistan. To increase revenue collection, there is a need to collect taxes rather than increasing taxes.

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