Tobacco growers, traders, and industry representatives in Pakistan called for the immediate withdrawal of the Rs390 ($1.40) per kilogram tobacco export tax and a broader review of sector taxation, arguing current policies are reducing farmer incomes and export competitiveness. Speaking alongside political leaders including Asad Qaiser, industry representatives said government revenue from the sector had fallen from Rs294 billion ($1.1 billion) to Rs165 billion ($594 million) following higher taxes, while tobacco prices paid to growers were reportedly around Rs180 ($0.65) per kilogram lower than a year earlier.
The group also opposed a proposed minimum indicative price of Rs525 ($1.89) per kilogram for Virginia tobacco in the 2026-27 budget, called for a third tobacco tax tier to support domestic manufacturers, and urged authorities to ease regulatory pressure on growers, dealers and exporters.
