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  • PMI Talks Illicit Trade, Tobacco Reforms in Pakistan

    PMI Talks Illicit Trade, Tobacco Reforms in Pakistan

    Pakistan’s Federal Minister for Commerce Jam Kamal Khan met with a delegation from Philip Morris International to discuss challenges in the country’s tobacco sector, with a focus on illicit trade, regulatory gaps, and export potential. The delegation highlighted that an estimated 45–47 billion untaxed cigarettes are sold annually, contributing to revenue losses of around Rs350 billion ($1.3 billion) and creating competitive pressure on the formal sector. Discussions also addressed weaknesses in supply chain oversight, including tobacco leaf procurement and limited traceability, which enable informal manufacturing.

    Officials emphasized the need for stronger, coordinated enforcement across federal and provincial authorities, noting that existing regulations are often inconsistently applied. The role of the Pakistan Tobacco Board and broader policy challenges linked to IMF-related trade reforms were also reviewed, with both sides agreeing to continue collaboration on measures to improve compliance, strengthen monitoring systems, and support formal sector growth.

  • Pakistani Growers Seek Help Over Issues with Tobacco Companies

    Pakistani Growers Seek Help Over Issues with Tobacco Companies

    The chairman of the Tobacco Growers Association in Pakistan’s Khyber Pakhtunkhwa province, Daud Jan Khan, said 2026 had the potential to be one of the worst years for growers, accusing national and multinational purchasing companies of exploitative practices and alleging that the Pakistan Tobacco Board (PTB) failed to enforce agreements under Martial Law Order 487 or ensure proper use of cess funds for tobacco-growing regions. Khan led a seven-member delegation that met with Governor Faisal Karim Kundi, who, after the meeting, pledged to address farmers’ concerns on a priority basis.

    Khan also claimed exports declined due to harassment of small dealers by tax authorities and said the governor promised to convene a joint meeting with companies and PTB officials after Eidul Fitr to seek solutions.

  • India Withdraws 18% Duty on Unmanufactured Tobacco

    India Withdraws 18% Duty on Unmanufactured Tobacco

    India’s Union government withdrew the 18% central excise duty on unbranded, unmanufactured tobacco and tobacco refuse for retail sale, according to a gazette notification issued on Feb. 1, 2026, the same day the Union Budget for 2026–27 was presented. The move revokes a duty imposed in December 2025 and follows representations from tobacco farmers and industry stakeholders, including a delegation led by the Tobacco Board chairman, who warned the tax would burden growers and disrupt the market. The withdrawal does not affect existing excise duties on cigarettes, which remain unchanged and continue to be levied based on stick length.