PTI govt urged not to impose taxes on local tobacco industry

ISLAMABAD: Tobacco farmers and industrial workers have demanded the Pakistan Tehreek-e-Insaf (PTI) government not to impose heavy taxes on local industry, saying the move would create monopoly of multinational companies and eliminate thousands of jobs from local industry. 

 “Hundreds of thousands of farmers and at least 20,000 industrial workers would go jobless if the government imposes new taxes on local industry at the behest of multinational companies,” said leaders of farmers and industrial workers in a statement. 

Representatives of industrial workers and farmers held a meeting to discuss the issues they were facing with regard to government’s move of imposing new taxes. “We will not accept any tax other than Rs 10 per kg tobacco,” said the statement. 

Last year, the government proposed imposition of Rs 300 advance tax per kilogram on tobacco which triggered protests and demonstrations by the farmers and industrial workers. Under the proposals, farmers had to sell the crop for Rs130 per kilogram to the tobacco companies but they would have to pay Rs300 tax per kilogram.

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After several rounds of meetings with government officials, National Assembly speaker Asad Qasier played a role for withdrawal of the decision.  “Multinational companies are making fresh efforts that the government imposes heavy  taxes on farmers, annihilate small industrial units and eliminate dealers,” they said.  

According to farmers, there were more than 22 small companies in the province that used to pay better prices to farmers than other major companies and then their purchasing centres were located in villages where they could easily sell their produce. 

The province was producing 98 per cent of the tobacco crop in areas including Buner and Mansehra, Shergarh in Mardan and Charsadda and Swabi districts. Swabi is considered to be major producer where tobacco is not only a cash crop but the also the lone source of livelihood for millions of households. They said that we fear that multinational companies wanted to establish their monopoly over the industry which is not in anyone’s interest. They said that the government should impose taxes, if it wanted, on a pack of cigarette instead of denying farmers and industrial workers livelihood opportunities.  

The meeting was attended by Abrar Ullah, president Mehnat Kash Labour Federation and Rizwanullah, president, Kisan Board Pakistan. Haji Abdul Nabi Mohmand, president Sarhad Agricultural and Rural Development Organisation and Haji Niamat Shah, president Anjuman Tahaffuz Kashtkaran and Liaqat Yousafzai, president Tahaffuz Haqooq Kashtkaran also attended the meeting.

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