Saturday, March 25, 2023

Senate body holds in-camera session to discuss taxes paid by tobacco companies


ISLAMABAD: An in-camera session of a Senate Standing Committee was held to discuss reduction in taxes paid by tobacco manufacturers countrywide, ARY News reported Tuesday.

The Senate body prepared its report on the issue. It was told that loss of billions of rupees was being observed annually. The officials requested the Senate body to take concrete steps to stop smuggling of cigarettes.

The administration in Azad Kashmir should be approached to stop smuggling of cigarettes and all cigarette producers should be brought under tax net in the valley.

Read: Measures afoot to curb tobacco use in country: parliamentary secretary

The introduction of trace and track system for tobacco should also be made functional. The meeting was told that multinational firms should create employment opportunities in Pakistan.

The FBR official briefed that meeting that cigarettes smuggling had resulted decrease in ratio of tax collection. The market share of two multinational companies is 60 percent, he said.

He said 13% increase was being witnessed on tobacco production in Pakistan, annually.

“Pakistan Tobacco Association has paid Rs 350 billion tax in the last five years”. He informed that local cigarette companies were also hesitating in tax payment and the core reason of their shifting to Azad Kashmir was tax evasion.

He said tax imposition of cigarette manufacturing in Azad Kashmir would boost revenue.


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