ISLAMABAD – Illegal tobacco business in the country has witnessed an increase of 11 per cent in last one year bringing losses worth billions of rupees to the national exchequer, sources in the Federal Board of revenue said here Tuesday. It merits mentioning here that the sale of smuggled cigarettes has increased by more than 66pc going from 1billion to 1.7 billion sticks alone in this year. With one Korean brand dominating the market with about one billion cigarettes sticks to its credit. “We have witnessed a trend where increase in the incidence of federal excise duty on cigarettes during the last couple of years has consistently led to increase in Excise Duty evasion by some small-scale manufacturers or availability of smuggled cigarettes”, sources in FBR said. “Pakistan cannot achieve the target of reducing tobacco consumption by increasing taxation as it has been witnessed in the developed countries, as increased taxation or price only encourages tax evasion in Pakistan”.