PESHAWAR: Tobacco growers and exporters of Khyber Pakhtunkhwa have severely criticised the government’s current tax policy, labeling it “tax upon tax” and the economic massacre of thousands of families.
They have demanded that the federal and provincial governments immediately abolish the unnecessary and discriminatory taxes imposed on the tobacco sector to safeguard national exports and local employment.
According to growers’ leaders, tobacco is the only agricultural crop subjected to 11 different types of taxes from cultivation to sale.
Along with the Tobacco Cess of Rs 27.50 per kilogram levied by the provincial government, another separate tax of Rs 50 per kilogram has also been enforced.
Also read: Tobacco export tax not applicable to growers: experts
The growers maintained that under the Constitution of Pakistan, such direct taxes cannot be imposed on any agricultural crop, yet the tobacco sector is being targeted through various tactics.
Leaders of the Tobacco Action Committee stated that the federal and provincial governments are treating this crucial sector of Khyber Pakhtunkhwa like a stepmother.
They pointed out that while cotton farmers and textile exporters in Punjab are being given billions of rupees in incentives on electricity, gas, and export duties, the tobacco sector of Khyber Pakhtunkhwa is instead being burdened with additional taxes, despite this crop being the backbone of the provincial economy.
Exporters argued that across the globe, exports are kept tax-free to promote trade, but in Pakistan, heavy duties are imposed even on tobacco exports, causing local tobacco to lose its competitiveness in international markets.
Copyright Business Recorder, 2026
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