ISLAMABAD: The Pakistan Tobacco Company (PTC) on Friday expressed its concern over false information being spread by the media about the loss of funds due to tax evasion by legitimate tobacco companies.
PTC officials expressed concern over data from the Islamabad-based think tank, which showed a huge revenue loss to the fund of about $567 billion by legal tobacco companies.
It is important to note that this image is inaccurate, misleading, and out of touch with ground reality. The only disadvantage of the tobacco industry for the government of Pakistan is tax evasion by illegal producers, as the legal industry pays all taxes and duties.
The wrong figure reflects the accumulated loss in the decade since the report was published, which unfortunately went unrecorded in most conversations.
This oversight has led to misunderstandings and misunderstandings about the legal impact of tobacco production.
The implications of these findings are important for informed public discourse, as presenting data without clearly identifying the duration of the decade can contribute to a narrative that suits the interests of some illegal supporters of the tobacco industry.
PTC representatives questioned the legitimacy of such reports, which reduced the impact of illegal tobacco trade in the country.
He said that the introduction of the 3-tier system in 2017 was necessary for the government due to the decline in revenue collection, adding that the regime not only allowed to increase revenue and reduce illegal market share but also worked.
However, the illegal tobacco industry operates outside of a strong regulatory framework but seems to be missing the surveillance and regulatory measures that are urgently needed by legal and law enforcement partners.
There are concerns within the relevant department that this description and subsequent public disclosure may lead the government to make policy decisions that deliberately support these non-compliant organizations.
The report also cited the Senate Special Committee on Tobacco Tax Cut Causes to highlight the issue of the tax cut. Ironically, in the same minute, FBR admitted that the illegal market share was more than 36 percent, leading to a decrease in tax revenue.
Law enforcement agencies cite a nationwide crackdown on the illegal cigarette trade, which costs Pakistan’s government $300 billion a year, rather than the impact of reporting for a decade. Such a message.
Contrary to the impact of subsequent reports and data, the legal tobacco industry contributed a whopping $148 billion in fiscal year 2021-22 and $173 billion in 2022-23.
This fiscal revenue represents the legal obligation of the industry to comply with the agreed tax structure carefully designed to meet budget obligations and ensure fair and substantial revenue generation for the development of the country.
They said it is important to introduce strict compliance of the legal tobacco industry with all government regulations, including the introduction of a track and trace system (TTS).
This law is in stark contrast to the illegal sector, which continues to violate this law with impunity.
This disparity in enforcement undermines the rule of law and puts the legal industry at a competitive disadvantage because it goes against the principles of fair trade and fair competition.
The representative said that the government of Pakistan recently recognized PTC as one of the highest tax-paying organizations in the country, indicating that the company complies with the country’s laws and good corporate citizenship.
The importance of ensuring a level playing field for the legal sector has been emphasized to ensure stability, which is currently being undermined by the uncontrolled practices of the illegal sector.
