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Smuggled coffee brands are thriving in Pakistan amid high customs tariffs and duty. The coffee drinking culture in the country is expanding, driven by shifting consumer preferences, particularly among the youth. However, high duties and tariffs pose a significant barrier to market expansion, unlike the tea sector, which has to pay low duties.

Coffee imports face disproportionately high duties, which go up to 53% on finished products and 28% on bulk (raw material) purchase. This has led to a parallel market for smuggled coffee brands, which undermines the formal business that pays taxes and complies with regulations.

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