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ISLAMABAD, Oct 19 (APP):Fair Trade in Tobacco (FTT) on Saturday praised the government’s recent initiative to crack down on tax evaders, emphasizing the critical need for enforcement in all sectors.
However, FTT expressed concern over the omission of the tobacco industry from the government’s efforts despite the sector being responsible for over Rs300 billion in annual tax evasion, said a news release.
The FTT urged the Federal Board of Revenue (FBR) to implement the Track and Trace System (TTS) across all tobacco manufacturers, particularly targeting illicit operators in Khyber Pakhtunkhwa.
Meanwhile, FTT Chairman Muhammad Amin urged the government to prioritize this issue, highlighting that the tobacco sector could generate over Rs500 billion in taxes annually if adequately regulated.
The FTT, a leading platform representing responsible tobacco growers across Punjab, lauded the recent government initiative to tackle tax evasion in several key sectors.
FBR has identified a staggering Rs3,400 billion in sales tax fraud across significant industries such as textiles, cement, iron, steel, beverages, and batteries, he added.
He welcomed this bold move, recognizing it as a critical step towards strengthening Pakistan’s fiscal stability. He reiterated FTT’s support for any policy promoting transparency and accountability across industries.
“We commend the government for finally cracking down on major tax evaders who have been bleeding the national exchequer dry. The steps announced by Finance Minister Muhammad Aurangzeb are the need of the hour, and we fully support efforts to bring tax evasion to a halt,” said Muhammad Amin.
The illicit tobacco trade, driven mainly by manufacturers in Khyber Pakhtunkhwa (KP) and Azad Jammu and Kashmir. Despite existing laws, these entities openly flout economic and health regulations, resulting in significant revenue losses for the country.
As a law-abiding growers and stake-holders representative, the FTT urged the FBR to prioritize implementing the Track and Trace System (TTS) across all tobacco manufacturing units in Pakistan.
“The lack of TTS implementation in certain regions creates an unfair playing field and undermines the rule of law. We ask the FBR to take decisive action against these violators,” said Amin.
Chairman FTT emphasized that the legal and regulated tobacco industry has the potential to contribute over Rs. 500 billion annually to the national treasury if adequately monitored and regulated. He urged the government to recognize this sector’s enormous untapped revenue potential.
“Our legal growers and manufacturers are committed to contributing their fair share to Pakistan’s economy. All we ask for is a fair and just regulatory environment where law-abiding businesses can thrive, and illicit players are held accountable,” he stated.
“It is disappointing that the media gives undue attention to foreign-funded so-called anti-tobacco organizations, which operate in Pakistan without proper government permissions.
These NGOs, working without NOCs from the Economic Affairs Division or registration with the Ministry of Interior, have hijacked the narrative while ignoring the illegal operations of local manufacturers who evade taxes. This is simply unfair,” he remarked.
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