KARACHI: The Pakistan Tobacco Company paid over Rs23 billion to the Federal Board of Revenue (FBR) in term of duties and taxes during the first quarter of 2016.
According to the announcement of the company, PTC declared net turnover of Rs11.54 billion, after-tax-profit of Rs2.81 billion and earnings per share of Rs11.01.
Despite a decline in volume, the gross turnover increased as a result of the excise-led price increases in June and December 2015. “While PTC’s contribution to the government revenues has increased over the last year, illegal cigarette trade is becoming an ever-increasing threat to sustainability of the legitimate tobacco sector and the revenues it contributes to the exchequer,” a PTC statement said.
Quoting The Nielsen report on Illicit Cigarette Trade in Pakistan, 2015 it stated that an illicit brand sells at an average price of Rs27 per pack as compared to Rs57 per pack for the legitimate, tax-paying brands.
“If this continues unabated the illicit cigarette trade is expected to cause a loss of more than Rs24 billion to the national exchequer within this calendar year,” it added.
