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Tag: Pakistan

  • Pakistan Seals Five Tobacco Purchase Centers

    Pakistan Seals Five Tobacco Purchase Centers

    Pakistan’s Governor Inspection Team (GIT) sealed five tobacco purchasing centers in Khyber Pakhtunkhwa’s Swabi district following inspections prompted by complaints from tobacco growers. The action was taken over alleged violations of tobacco procurement rules, including delayed purchases, unpaid farmer dues, and improper handling of crop purchasing operations.

    The sealed centers included facilities operated by Frontier Traders, Atta-ur-Rehman & Company, Ali Leaf Traders, Khyber Tobacco Company, and AK Tobacco Traders. Officials found some companies had not begun purchasing despite instructions from the Pakistan Tobacco Board, while others had outstanding farmer payments or had displayed notices halting purchases despite holding tobacco stocks. The companies were referred to the assistant commissioner’s office in Chota Lahor for further action under applicable regulations.

  • Pakistan Growers Demand Greater Transparency

    Pakistan Growers Demand Greater Transparency

    Tobacco growers in Pakistan are pressing the Pakistan Tobacco Board (PTB) to strengthen enforcement of procurement rules, alleging that weak oversight allows buyers, particularly smaller tobacco companies and dealers, to exploit farmers through unfair grading and purchasing practices.

    The Swabi Action Committee said PTB officials pledged to enforce approved grading standards, government-set prices, and procurement regulations to make the buying process more transparent and farmer-friendly. The group also called for prompt investigations into procurement complaints and warned it would stage peaceful protests if the board fails to follow through. Separately, growers claimed multinational tobacco companies have reduced purchasing quotas while domestic companies have not finalized contracts in line with PTB regulations.

  • Pakistan Senate Panel Expands Probe Into Alleged Cigarette Smuggling Case

    Pakistan Senate Panel Expands Probe Into Alleged Cigarette Smuggling Case

    A Pakistani Senate subcommittee widened its investigation into the seizure of 11 trucks allegedly carrying smuggled cigarettes, while rejecting what it described as a media campaign linking committee members to the case. The panel ordered the Federal Board of Revenue to identify officials responsible for media briefings following a July 20 hearing and directed the Federal Investigation Agency to investigate what it called targeted smear campaigns against lawmakers.

    The committee also questioned Customs’ handling of the seizure, including its jurisdiction, the legal basis for the case, conflicting valuations of the seized cargo, and delays in producing arrested truck drivers before a court. As part of a broader review of tobacco tax evasion and smuggling—estimated at about $1 billion annually—the panel called for additional information on tax-exempt imports, quota registrations, and customs procedures, saying it intends to expand scrutiny of potential irregularities across customs posts, dry ports, and revenue agencies.

  • Pakistan Pressed to Investigate Cigarette Smuggling Ring

    Pakistan Pressed to Investigate Cigarette Smuggling Ring

    ACT Alliance Pakistan called for a nationwide investigation into what it describes as a highly organized network smuggling Afghan-linked cigarette brands, including Milano and Mond, into Pakistan. The group alleges the illicit trade is costing the government billions of rupees in lost tax revenue annually while funding cross-border money laundering and organized criminal activity. According to ACT Alliance, the cigarettes are smuggled through Balochistan and distributed across Pakistan using sophisticated logistics networks, sometimes concealed within shipments of legitimate goods.

    The organization urged Pakistan Customs, the Federal Board of Revenue, and law enforcement agencies to dismantle the alleged smuggling and financial networks, arguing the issue has evolved beyond tax evasion into a broader national security concern.

  • Pakistan Warns Companies Against Delaying Tobacco Purchase

    Pakistan Warns Companies Against Delaying Tobacco Purchase

    The Pakistan Tobacco Board (PTB) warned tobacco companies and dealers to immediately begin purchasing flue-cured Virginia (FCV) tobacco or face enforcement action under the PTB Ordinance of 1968. In a notice to the industry, the board said companies had failed to open buying centers within the July 8-11 procurement window established under the Marketing Control Rules, 2016, putting them in violation of the regulations.

    PTB directed companies to begin purchases and submit compliance reports within three days. The warning follows last year’s delayed buying season, when some manufacturers and dealers waited until tobacco was declared surplus before purchasing at lower prices, a practice growers say resulted in significant financial losses.

  • Pakistani Growers Protest ‘Violation’ of Tobacco Purchase Agreement

    Pakistani Growers Protest ‘Violation’ of Tobacco Purchase Agreement

    Tobacco growers in Pakistan’s Khyber Pakhtunkhwa province accused the local management of a multinational tobacco company of failing to honor procurement agreements by refusing to purchase leaf that farmers say meets agreed quality standards. Protesting outside the Pakistan Tobacco Company’s depot in Charsadda, growers claimed the alleged refusal has left hundreds of farming families facing financial hardship during the marketing season and warned that continued purchasing delays could discourage future tobacco cultivation.

    Farmer representatives are calling on provincial and federal authorities to intervene, investigate the dispute, and ensure procurement contracts are honored, while threatening to escalate demonstrations if the company does not resume purchases.

  • Pakistani Tobacco Farmers Question Excessive Taxes

    Pakistani Tobacco Farmers Question Excessive Taxes

    Pakistan’s tobacco industry is raising concerns over the sector’s growing tax burden and the use of development funds collected from tobacco producers, arguing that multiple levies are increasing costs without delivering promised benefits to farming communities. Industry officials highlighted three major taxes — the Federal Excise Duty (FED), Federal Tobacco Cess (FTC), and Tobacco Development Cess (TDC) — noting that the advance FED on green leaf tobacco currently stands at Rs390 ($1.40) per kg, while the TDC in Khyber Pakhtunkhwa has risen from Rs6 per kilogram in 2023 to Rs27.5 ($0.02 to $0.10) per kg.

    Although the TDC is legally earmarked for infrastructure, agricultural development, and farmer welfare in tobacco-growing districts, industry representatives say an estimated Rs6 billion ($18 million) collected over the past two years has produced little visible improvement, prompting calls for greater transparency and accountability in how the funds are allocated and spent.

  • Pakistani Growers Reject Move to Scrap Price Mechanism

    Pakistani Growers Reject Move to Scrap Price Mechanism

    Tobacco growers in Pakistan have urged the federal Ministry of National Food Security to consult farmers before abolishing the weighted average price (WAP) mechanism used to determine the minimum indicative price (MIP) for tobacco. Speaking at a press conference in Swabi, growers and industry representatives argued that the government had presented misleading figures to the federal cabinet, overstating farmers’ profits to justify proposed amendments to the Tobacco Marketing Rules, 2016, and Martial Law Order 487.

    Former Pakistan Tobacco Board director Muhammad Ayaz Khan said rising production costs, lower yields caused by adverse weather, and reduced purchases by tobacco companies meant growers earned only marginal profits during the 2024-25 season. Farmer representatives also said many growers remain burdened with debt after companies declined to purchase lower-grade tobacco and called on the government to conduct an independent survey before making changes to the pricing system.

  • Pakistani Tob. Growers Call to End Export Tax

    Pakistani Tob. Growers Call to End Export Tax

    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.

  • Pakistani Farmers Slam 11 Different Tobacco Taxes

    Pakistani Farmers Slam 11 Different Tobacco Taxes

    Tobacco growers and exporters in Pakistan’s Khyber Pakhtunkhwa province have criticized what they describe as a “tax upon tax” regime on tobacco, claiming the sector is subject to 11 separate taxes from cultivation to sale. They say provincial charges include a Tobacco Cess of Rs 27.50 ($0.10) per kg and an additional Rs 50 ($0.18) per kg levy, alongside federal and other taxes that they argue reduce export competitiveness.

    Industry representatives claim tobacco supports thousands of families and is a key provincial crop, but say it is being disproportionately taxed compared with other agricultural sectors, with calls for the removal of what they describe as discriminatory levies affecting production and exports.