ISLAMABAD: Board members of Pakistan Tobacco Company (PTC) has said that the tobacco industry would contribute Rs120 billion as taxes in the upcoming fiscal year 2018-19..
“Our contribution into taxes can go up to Rs120 billion and can enter into club of paying over $1 billion mark next budget against Rs90-92 billion projected collection for outgoing fiscal year. The market share of illicit cigarettes stands at 35 percent and by reducing 10 percent, the tax collection can easily go up by Rs 10 billion. We propose to the government to continue with existing three tier taxation system and persistent efforts against illicit cigarettes in big way,” they told media after holding annual general meeting (AGM).
The PTC Board is comprised of renowned former bureaucrats and others belonging to banking and other prestigious institutions of the country.
After taking stern actions by the FBR on enforcement front, the illicit tobacco industry shifted their business from KP to Azad Jammu and Kashmir (AJK) and according to the estimates done by PTC that the AJK government could generate tax revenues to the tune of Rs7 billion by bringing them into tax net.
The board members of PTC asked the FBR to jack up existing 5 percent withholding tax on tobacco to 10 to 15 percent and argued that it was not tax imposed on tobacco growers. “We are willing to pay this adjustable withholding tax because it discourages informal and illegitimate sector,” they added.
