Federal Law Minister Azam Nazeer Tarar clarified on Friday that the government has not introduced any new taxes or regulations on tobacco crops or landowners in Khyber Pakhtunkhwa.
Addressing the National Assembly in response to concerns raised by lawmakers Syed Waseem and Asad Qaiser regarding a supposed tax on tobacco, the minister said that the government, under Prime Minister Muhammad Shehbaz Sharif’s leadership, is fully committed to promoting agriculture and ensuring that farmers receive the support they need.
“No new regulations or taxes have been imposed on tobacco crops or landowners,” Tarar stated, emphasizing that any government involvement starts only when the crop enters the processing stage.
He explained that two major multinational tobacco firms contribute around Rs 250 billion in taxes and account for 44% of the market share, whereas local companies — despite holding 56% of the market — contribute just over 3% in taxes. This disparity, he said, has led to a tax gap estimated between Rs 200 billion and Rs 300 billion.
While acknowledging that some proposals concerning raw tobacco are under discussion, he reassured the House that the government is mindful of the difficulties faced by farmers and remains committed to supporting them.
The minister stressed the critical role agriculture plays in Pakistan’s economy, highlighting ongoing efforts to improve seed quality and plant protection under the prime minister’s direction.
Azam Tarar concluded by stating, “Industries earning profits have a responsibility to contribute their fair share to the national treasury.”
