Tobacco growers welcome decision to abolish Rs300 tax on crop

Published June 27, 2019
“Higher taxes lead to exploitation of small farmers.” — Dawn/File
“Higher taxes lead to exploitation of small farmers.” — Dawn/File

ISLAMABAD: Growers on Wednesday lauded the government’s decision of abolishing Rs300 additional tax on tobacco crop and asked the government to impose higher taxation on the multinational companies that were making huge profits.

The speakers also asked the authorities to play their role for restoration of workers terminated by the multinational tobacco companies.

Addressing a press briefing here at the National Press Club, the representatives of labour federation, Pakistan Kisan Board (PKB) and Sarhad Agriculture and Rural Development Organisation (SARDO) said the local industry was paying 5pc tax per kilogram on purchase of tobacco.

President PKB KP, Rizwanullah said that elimination of Rs300 tax from cultivators will increase the sale of tobacco on handsome rate and it will improve the financial status of the growers.

“The purchasers will now pay around Rs8.89 per kg at the rate of 5pc tax to government before purchasing tobacco,” he said.

The Federal Board of Revenue (FBR) had imposed tax of Rs300 on the sale of tobacco, which the local farmers termed as granting indirect benefit to the multinational cigarette manufacturers.

The speakers said that tobacco was a cash crop in Khyber Pakhtunkhwa (KP) and higher taxes would only have a negative impact on 1.13 million small farmers and around 15,000 local and cottage industrial workers of the province.

“Higher taxes lead to exploitation of small farmers,” Rizwanullah said.

The speakers alleged the multinational tobacco companies provided loan for the raw material to growers on 36pc interest rate and compelled the farmers to sell their produce at less than market rates.

President SARDO Haji Abdul Nabi Mohmand said multinational tobacco companies lobbied for imposition of additional tax on growers, but themselves avoided paying taxes.

“Strict penalties should be imposed at multinational companies for tax evasion,” he said.

President Labour Federation KP Ibrarullah said that multinational tobacco companies have terminated hundreds of workers from their job without any reason and they should be restored.

Published in Dawn, June 27th, 2019

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Anti-women state
Updated 25 Nov, 2024

Anti-women state

GLOBALLY, women are tormented by the worst tools of exploitation: rape, sexual abuse, GBV, IPV, and more are among...
IT sector concerns
25 Nov, 2024

IT sector concerns

PRIME Minister Shehbaz Sharif’s ambitious plan to increase Pakistan’s IT exports from $3.2bn to $25bn in the ...
Israel’s war crimes
25 Nov, 2024

Israel’s war crimes

WHILE some powerful states are shielding Israel from censure, the court of global opinion is quite clear: there is...
Short-changed?
Updated 24 Nov, 2024

Short-changed?

As nations continue to argue, the international community must recognise that climate finance is not merely about numbers.
Overblown ‘threat’
24 Nov, 2024

Overblown ‘threat’

ON the eve of the PTI’s ‘do or die’ protest in the federal capital, there seemed to be little evidence of the...
Exclusive politics
24 Nov, 2024

Exclusive politics

THERE has been a gradual erasure of the voices of most marginalised groups from Pakistan’s mainstream political...