PESHAWAR: The Pakistan Tobacco Company on Wednesday clarified that taxes were imposed on cigarette-manufacturing companies, not on tobacco farmers.
Hamza Amir Khan, Regulatory Affairs Manager at Pakistan Tobacco Company?, said they were committed to the economic welfare of growers.During an interaction with stakeholders and media representatives, he added that the company’s relationship with growers was based on trust and long-term economic sustainability.
He said that PTC purchased every kilogram of tobacco it committed to buy and, during recent surplus crop seasons, procured quantities beyond its announced demand under directives of the Pakistan Tobacco Board.
Hamza Amir said the current decline in demand was linked to surplus stocks, higher local tobacco prices compared to international markets and the growing share of illegal operators.He added that several illegal companies had failed to make timely payments to farmers, while others either delay procurement or refuse purchases despite issuing contracts.
Hamza Amir stressed that the interests of farmers could be protected through compliance with the framework issued by the Pakistan Tobacco Board, which regulated crop size and industry coordination.
Highlighting the impact of illegal trade, he said tax-evading operators were creating market instability and financial uncertainty for farmers. He said every one billion legally sold cigarettes contributed around Rs560 million to Khyber Pakhtunkhwa through the NFC share.
He added that Pakistan’s tobacco exports declined by 29.5 percent in value during the first quarter of the current year, citing data from the Ministry of Commerce.He said the PTC operations were documented, audited and conducted in accordance with international standards.
