ISLAMABAD: The representatives of local unions and associations of the Khyber-Pakhtunkhwa have urged upon the Federal Board of Revenue (FBR) that big tobacco companies have insisted to impose an unlimited tax on dry tobacco leaf to exclude tobacco purchasers or small manufacturers out of the market, and have a complete hold over tobacco buying in the country.
Farmers' representatives expressed concern that advance tax on tobacco crops will diminish the number of tobacco dealers, hence; kill the local tobacco industry and millions associated with this cash crop.
It will then be convenient for companies to negotiate with the poor farmers.
The objective of this manipulation is also to fulfill the company's objective to import tobacco from the other countries to increase profits.
The government is considering to increase the ratio of advance tax from Rs10 per kg to Rs500 per kg in the next budget.
The reason given to support this proposal is "to document this sector," which can be done with Rs10/kg as well.
Industry experts suggested that in a bid to increase revenues from the tobacco sector, the government should take stern action against the nationwide sale of smuggled and illicit cigarettes and increase taxes on tobacco packs.
Tobacco farmers of the region are already trying to cope with the challenges such as less than 40 percent of the wheat crop this year due to different calamities such as unusual rains topped with unexpected hailstorms.
Sadar Anjuman Tahafuz-e-Haqooq-e-Kashtkaran Haji Naimatullah said, "Global virus has badly impacted every single bread-earner of the country. If the government increase taxes, it would add further to the miseries of a daily wager as well as a tobacco farmer which is a cash crop, our lives depend on it."
The farmers and industry workers also met with Shandana Gulzar Khan, MNA and head of the Sub-Committee of the Special Committee on Agricultural Products, and the chairman Pakistan Tobacco Board.
The two officials also expressed grave concern over the imposition of Rs500 per kg advance tax on tobacco.
The PTB chairman assured that the board objects the imposition of advance tax on the tobacco farmers.
On this occasion, MNA Shandana Gulzar said, "the welfare of the farmers is among the top priorities of the PTI government."
Tobacco farmers and the industry labor play a vital role directly for the Pakistani tobacco sector and indirectly towards the national economy.
Imposing a tax on cigarette pack is another option, which can help increase government revenues from the tobacco sector.
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