KP growers have strongly objected the government's decision of abolishing Rs 300 advance tax on tobacco sector and termed it as their economic murder and asked for retaining the decision to stop black marketing of the tobacco.
Abdul Qayyum, local tobacco farmer told at a news conference at Peshawar Press Club on Thursday that the Federal Minister of State for Revenue, Hammad Azhar had announced the withdrawal of Rs 300 advance levy on tobacco sector during ongoing National Assembly session, which was imposed to eradicate black marketing of the tobacco.
Flanked by the farmers, Ali Ahmad, Gulzar Khan and others, he urged the government to reverse the decision in best interest of growers and the tobacco sector.
Abdul Qayyum said the imposition of the proposed tax aims at eradication of illegal tobacco trade and would helpful for consistent production of tobacco for longer period.
The Pakistan Tobacco Board Ordinance of 1968 of 20A gave full protection to tobacco growers and bounded the tobacco manufacturing companies to purchase additional yield of tobacco from the growers, Qayyum said.
He further elaborated about affects with imposition of the advance tax on tobacco sector that the claims of some growers were completely wrong about offer of less price of their crop due to introduction of adjustable excise duty on the tobacco and called it as disinformation and misstatement.
He informed that the Ministry of Commerce has fixed minimum indicative price of tobacco every year with proper consultation with representatives of the tobacco growers.
He said the tobacco is being cultivated in smallest part of the country, while the government had exempted the tobacco sector from Federal Excise Duty by SRO 1149 of 2018. So, he said the government once again misstating on behalf of cigarette manufacturing companies and abolished the additional tax on the tobacco sector.