LAHORE: Tobacco farmers of Khyber Pakhtunkhwa have said that in the wake of the Covid-19 pandemic, the government must intervene and fix advanced tax on tobacco products instead of imposing levies on farmers.
Led by Sarhad Agricultural and Rural Development Organisation and other organizations, farmers told Pakistan Today that the Pakistan Tehreek-e-Insaf government had taken several measures to rescue other sectors from the pandemic and demanded that the same for them.
The farmers had the support of Kisan Board Pakistan, Pakistan Tobacco Workers Association, Sarhad Agricultural and Rural Development Organisation, Labours Federation, and Anjuman Tahaffuz Haqooq-i-Kashtkaran.
Gul Khan, a farmer, said the province had no other cash crop like cotton and sugarcane, so they were left to grow tobacco as the only cash crop in the province. He said over the years, despite no government support, they had been adding billions to the national exchequer through central excise duty besides providing livelihood to thousands of families.
“(Advance) tax on farmers means relief for the tobacco industry while growers will be hit hard. The measure will also help multinational tobacco companies to create a monopoly in Pakistan,” he said, adding that tobacco companies would buy the finest quality tobacco from farmers at lower rates.
Mehnatkash Labour Federation President Ibrarullah said that when coronavirus lockdown and the subsequent halt in trade had snatched millions of jobs, the local tobacco sector was still intact and had the capacity to provide jobs to thousands of workers.
“On the other hand, multinational companies are known for exploiting farmers and workers during the times of crisis,” he maintained.
He said one such company in Akora Khattak denied Mahnatkash Labour Union from working on the premises even though the union was duly registered with the Pakistan Labour Department.
There are reports that Rs500/kg advance tax is being imposed on tobacco in the 2020-21 budget, Anjuman Tahffuz Haqooq-i-Kashtkaran president Haji Niamatullah noted, demanding the government to reinstate the prevailing tax ratio without imposing an advanced tax on tobacco crops.
Government should support farmers and given them privileges to enhance harvesting for public interest. Moreover, gov’t should given exemption on levy taxes which is imposes upon farmers.