SWABI: Awami National Party leader and businessman Irshad Khan on Saturday asked the federal and provincial governments to rationalise the tax structure on tobacco so that the problems faced by growers, dealers and small industrialists could be resolved.
Speaking at a press conference here, he said the most pressing issue at present was the delay in payments to dealers, affecting growers.
He also asked the Federal Board of Revenue (FBR) to resolve the issues concerning the tobacco dealers.
He urged the FBR to take immediate notice of the situation and resolve the issue on an urgent basis. “Tobacco is a major cash crop in the plains of Khyber Pakhtunkhwa, but the sector is facing serious challenges due to excise duties and taxes imposed by the FBR,” he added.
Irshad Khan termed the imposition of uniform tax on all brands as unjust.
He said that while high-priced brands could absorb higher taxes, smaller industries could not. “If the same tax is applied to a Rs100 pack as to a Rs600 pack, small manufacturers will not be able to meet the costs of raw materials, fuel and labour, which could lead to the closure of their businesses,” he added.
He said that the Revenue Department had increased the tax rate from 6 percent to 18 percent over the past few years.
According to him, these measures not only reduced revenue collection but also negatively affected business activity.
Irshad Khan said that economic growth depended on the circulation of capital, and when business activity slowed down, income opportunities also declined.
