PTB warns tobacco companies against illegal purchases, vows strict action

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PESHAWAR: The Pakistan Tobacco Board (PTB) has announced a zero-tolerance policy against illegal tobacco purchases, warning tobacco companies, dealers and other stakeholders of strict legal action over violations of prescribed rules.

PTB Chairman Muhammad Shahid Hussain said that purchasing tobacco below government-approved rates, buying from undeclared purchase centres, making illegal purchases or delaying payments to tobacco growers would not be tolerated.

He warned that strict action would be taken against those found violating regulations, including sealing of illegal purchase centres and auctioning of seized tobacco in accordance with the law.

Illegal purchase centres may face sealing

The PTB chairman said the board had already conveyed its position during a meeting of the Khyber Pakhtunkhwa Assembly Special Committee, chaired by Abdul Karim, where it was made clear that Governor Inspection Teams (GITs) and relevant authorities have legal powers to act against unlawful tobacco procurement.

He said purchase centres involved in illegal activities could be sealed, while seized tobacco could be auctioned under legal procedures.

The same stance was reiterated during a meeting of the committee formed by the Khyber Pakhtunkhwa Chief Minister, chaired by Adviser to the Finance Minister Muzammil Aslam.

Action sought from KP government

Muhammad Shahid Hussain said PTB had requested the provincial government to ensure implementation of existing legal provisions, including powers granted to Assistant Commissioners under a 2023 provincial notification.

He said these powers, along with the Terms of Reference of Governor Inspection Teams and the Price Control Act, 1977, could help district administrations prevent illegal tobacco purchasing and protect growers’ interests.

The chairman added that PTB had formally approached relevant authorities after its position was not fully reflected in the official minutes of a previous meeting.

Letters have been sent to the Chief Secretary Khyber Pakhtunkhwa, Secretary Home, Additional Chief Secretary Home, Secretary Finance, Secretary Excise and Chairman Special Committee Abdul Karim, urging strict action against illegal procurement practices.

Growers’ rights to be protected

The PTB chairman said action would be taken against elements involved in exploiting tobacco growers, violating approved purchase rates and carrying out unlawful procurement.

He assured that the rights and financial interests of tobacco growers would be protected during the ongoing marketing season, adding that no leniency would be shown towards violations of tobacco purchase regulations.