ISLAMABAD: Senior leader of Pakistan Tehreek-e-Insaf (PTI) and former National Assembly Speaker Asad Qaiser, accompanied by political leaders from Swabi, tobacco growers, dealers and industry representatives, demanded the immediate withdrawal of the Rs390 per kg export tax on tobacco.
The government was urged to undertake a comprehensive review of policies affecting the sector and was cautioned that farmers were facing severe economic distress under the prevailing circumstances.
Speaking at a news conference at Khyber Pakhtunkhwa House here on Monday, Asad Qaiser said the issue was not political but a national concern, noting that more than 70 per cent of Pakistan’s tobacco production comes from Swabi and supports thousands of families. He demanded immediate relief for growers, arguing that current policies had pushed them into severe hardship.
He said the tobacco taxation regime had failed, with revenue collection declining from Rs294 billion to Rs165 billion despite higher taxes. According to Qaiser, excessive taxation was harming farmers, dealers and the local industry while strengthening monopolistic interests. He announced that he, along with MNA Shahram Khan Tarakai and other leaders, would pursue the matter through legal forums and, if necessary, contempt of court proceedings. While condemning smuggling, he stressed that it was the responsibility of federal and provincial governments to curb the practice.
Shahram Tarakai said he had repeatedly proposed reforms to the government, but tobacco growers and the industry continued to face discriminatory treatment. He called for a balanced tax structure that places a greater burden on large corporations than small businesses and claimed that two multinational companies had come to dominate the sector. Recalling the PTI government’s tenure, he said he had proposed a Rs10 per-unit tobacco tax to maintain balance in the system. He urged the government to reduce the tax burden and adopt policies in the national interest, adding that all political parties were united on the issue.
Tobacco industry representative Ayaz Khan said that despite rising inflation, tobacco prices had been reduced, and this year’s crop was being purchased at rates Rs180 per kilogram lower than the previous year.
