ISLAMABAD: The Senate Standing Committee on Commerce and Textile Industry on Thursday finally agreed to the new definition of the Tobacco following the intervention of the court, so that the Cess and other taxes on the tobacco sale could be collected in a just, fair and reasonable manner.
The Committee which met here under the chairmanship of Senator Shibli Faraz approved the amendment proposed by the Commerce Division in “The Pakistan Tobacco Board Ordinance, 1968”, and consequentially “The Pakistan Tobacco Board (Amendment) Bill, 2017” was passed by the Committee on Thursday which will be submitted to the Senate for the approval with amendment. The bill has already been approved by the National Assembly.
The meeting was also attended senator Mufti Abdul Sattar, senator Saud Majeed, senator Saleem Mandviwala, senator Naseema Ehsan, Senator Haji Saifullah Khan Bangash, Secretary Commerce and officials from Pakistan Tobacco Board.
The proposed amendment deals with the definition of Tobacco in the said ordinance. The existing definition of Tobacco was “the commodity which is made from the leaves of plant Nicotiana Tobaccum or Nicotiana Rustica and is commonly known as Tobacco and includes adjacent tender stalks or green tobacco but does not include tobacco waste”.
The new definition of Tobacco will be as “the commodity made from any part of the plant Nicotiana Tobaccum or Nicotiana Rustica used or consumed in the manufacturing of cigarettes or any other tobacco product or by-product through any other modes, forms and processes”.
Pakistan Tobacco Board earned $ 14.2 million with the export of tobacco and its products to different countries during 2016-17. Pakistan produces one of the best qualities of tobacco which is acceptable to leading cigarette manufacturing companies of the world.
Pakistan’s tobacco is being exported to many countries including USA, Egypt, Germany, Switzerland, Malaysia, Netherlands, Philippines, France, South Korea, Sri Lanka, Bangladesh, Afghanistan, Sweden, Yemen, United Kingdom and South Africa.
Out of total production of tobacco amounting to 122.542 million kg, 70 to 80 per cent is being used domestically while only 30 per cent is being exported presently.