Govt vows continued enforcement as PTC calls for stable tobacco tax policy

Finance Minister Muhammad Aurangzeb on Monday reaffirmed the government’s commitment to stricter enforcement and revenue mobilisation, while Pakistan Tobacco Company called for a predictable taxation regime to support formal sector growth in the tobacco industry.

The remarks came during a meeting at the Finance Division between the finance minister and a PTC delegation led by Usman Zahur.

According to an official statement, discussions focused on excise taxation, illicit trade, market dynamics, export competitiveness and regulatory challenges facing the tobacco sector.

Aurangzeb said the government’s ongoing fiscal reform agenda was centred on strengthening revenue collection, widening the tax base and improving transparency through technology-driven systems and enforcement mechanisms.

He said reforms in tax administration involving people, processes and technology were aimed at improving compliance, reducing leakages and ensuring fair tax collection across different sectors of the economy.

The finance minister noted that enforcement operations supported by digitisation, monitoring systems and coordinated action by relevant authorities were producing improved compliance and higher revenue collection in sectors including tobacco, sugar, cement, beverages and textiles.

The PTC delegation welcomed recent action against illegal and undocumented operators and emphasised the need for a stable and predictable taxation framework to encourage investment, formal sector expansion and sustainable revenue generation.

Both sides also exchanged views on coordinated enforcement efforts involving federal and provincial authorities to curb illicit economic activity and reduce the market share of undocumented products.

The meeting further reviewed sectoral competitiveness, regional taxation models, regulatory practices and international market opportunities linked to tobacco and value-added products.

PTC representatives highlighted Pakistan’s role as a regional manufacturing and export base for certain product categories and shared perspectives on export potential in international markets.

Aurangzeb reiterated that while the government remained committed to policy consistency and improved compliance, any sector-specific proposals would be examined in line with broader fiscal objectives and economic priorities.

He also reaffirmed the government’s commitment to continued engagement with the formal business sector to support exports, industrial activity, investment and sustainable economic growth.