Latest news with #Rs292
Express Tribune
6 days ago
- Business
- Express Tribune
PTC urges tax on cigarette paper
Listen to article The Pakistan Tobacco Company (PTC) has urged the government to impose an adjustable tax on cigarette paper in a bid to ensure full documentation of the cigarette industry and combat the rapidly growing illicit trade, which it says has now become the market leader. At a pre-budget media briefing, PTC Director Asad Shah expressed serious concern over the rise in untaxed cigarettes, calling for uniform implementation of the track-and-trace tax stamp policy. Without uniform enforcement, he argued, the policy is ineffective. Shah also proposed reducing the adjustable tax on cigarette filter material acetate tow from Rs44,000 per kilogram to Rs4,000 per kilogram to discourage smuggling. Authorities seized 450 metric tonnes of smuggled acetate tow this year alone, he added. Shah also proposed that adjustable tax should be imposed on cigarette paper to ensure complete documentation. He noted that illicit cigarettes now account for 58% of the total market, with Pakistan's annual cigare tte consumption estimated at 82 billion sticks. Shah claimed that the sector has the potential to generate Rs570 billion in tax revenue annually, but only Rs292 billion was collected in FY2023-24 and Rs223 billion so far in the first 11 months of the current fiscal year. "It is impossible to collect the remaining Rs50 billion in a single month," he said, pointing to widespread tax evasion and the alleged involvement of some non-governmental organisations (NGOs) pursuing specific agendas. Shah recalled that 12 years ago, the government taxed 67 billion sticks annually. That number has now dropped to just 34 billion, despite consistent or growing demand. He criticised the 2023 tax policy, saying it led to the second decline in government revenue from the sector in a decade. Despite holding only a 42% market share, the legal tobacco sector still contributes 98% of the revenue, Shah said. He urged authorities to enforce documentation requirements across the board, stressing that 18 billion sticks are being sold at or below Rs150 per packbelow the official minimum price of Rs162.25 — without any penalties for violators. He pointed out that no one has ever been penalised for violating the minimum price law and instead recommended raising the minimum price per pack to counter the perception of cigarettes being cheap in Pakistan. "No policy can succeed without non-discriminatory implementation," he said, adding that untaxed, locally manufactured cigarettes are still openly sold.
Express Tribune
14-05-2025
- Business
- Express Tribune
Govt urged to review tobacco taxes
Listen to article Experts have cautioned that the government's current tobacco taxation policy, if left unchanged in the upcoming 202526 federal budget, could jeopardize Pakistan's revenue targets. They emphasized the importance of basing fiscal decisions on real-world economic conditions, rather than solely relying on data and recommendations from health advocacy groups, both local and international. To ensure a balanced and effective budget, they urged policymakers to consider the broader economic impact of tax policies, particularly those affecting high-revenue sectors like tobacco, before finalising critical decisions. According to official data, Pakistan has the potential to generate more than Rs600 billion annually from the tobacco sector. Yet this year, only less than Rs300 billion is expected to be recovered. The remaining staggering amount of over Rs300 billion, equalling more than the combined federal budgets for education and health is lost to the illicit cigarette trade. The two major multinational companies, holding 44% of the cigarette market, paid Rs292 billion in taxes during the 2023-24 fiscal year. In stark contrast, over 40 domestic manufacturers, controlling 56% of the market, contributed just Rs5 billion. "The illegal sector now controls more than half the market and pays virtually nothing in taxes. What more evidence do we need?" Fair Trade in Tobacco Chairman Amin Virk questioned as he emphasised the importance of balance. "Yes, taxation has a role in public health, but you cannot ignore the economic consequences in developing countries like ours. When half the market goes underground, you lose the revenue and the ability to enforce health regulations." According to a recent report by the Policy Research Institute of Market Economy (PRIME), illegal trade costs Pakistan Rs3.4 trillion annually, equivalent to 26% of the federal tax target. This includes Rs1 trillion lost via misuse of the Afghan Transit Trade, Rs270 billion from smuggled petroleum, Rs65 billion from counterfeit pharmaceuticals, and Rs106 billion from illegally imported tires. Despite recent enforcement efforts and industry engagement, Pakistan's tax system remains structurally weak, with over 40% of the economy still operating informally and a narrow base of compliant taxpayers. Virk urged the government to act swiftly to ensure and enforce fair taxes in tobacco sector.
Express Tribune
09-02-2025
- Business
- Express Tribune
CDA green-lights key initiatives
ISLAMABAD: The CDA Board has decided to hire landscaping experts to further beautify Islamabad, along with the appointment of a Managing Director and three Directors for the Islamabad Water Agency. Additionally, the monthly rent for the petrol pump in Sector F-6 has been increased from Rs292,000 to Rs4.5 million, while the approval for hiring consultants for the restoration of the Parliament Lodges and Government Hostels has also been granted. On Friday, the third CDA Board meeting was held at the CDA Headquarters under the chairmanship of Chairman Muhammad Ali Randhawa, with the participation of all board members. Various agenda items were discussed during the meeting. The CDA Board approved the appointment of a Director of Finance to manage the financial affairs of CDA Hospital efficiently. It was also decided to implement the SAP (System, Applications, and Products in Data Processing) system for CDA's financial matters. In this regard, it was decided that the Government of Pakistan's accounting system, SAP, would be introduced for CDA's financial transactions. During the meeting, the Board approved a running contract for the provision of various kits in the Health Services Wing. The board was briefed that the monthly lease of the petrol pump in Sector F-6 has been raised from Rs292,000 to Rs4.5 million, with a 10% annual increase on the lease amount. Chairman Randhawa emphasised that data should be compiled for all assets under the administration wing. The board also decided to hire landscaping experts to beautify Islamabad further. Additionally, it was decided to hire a Managing Director and three Directors for the Islamabad Water Agency. Similarly, the recruitment of an Urban Developer and Carbon Credit Expert was also approved. The board decided to take action against officers and employees on deputation who had taken House Building Advances from CDA but had not made deductions. In this regard, it was decided to request the Establishment Division to take action against such officers. The meeting also decided that the last salary certificate of any deputation officer or employee would not be issued until they returned the advance taken from CDA. Chairman Randhawa stated that efforts would be made to facilitate CDA officers and employees in obtaining easy loans from other banks in addition to the house building and car advances provided by CDA. The CDA Board also approved the upgradation of the nursery located on Park Road and considered the proposal for establishing a Carbon Credit Centre within the nursery. Furthermore, the board approved the hiring of a Transaction Advisor for the Green Fortier Data Centre. The approval for e-payment gateways for the My Islamabad App was also granted. Lastly, the CDA Board authorised the hiring of consultants under section (F)42 for the restoration of the Parliament Lodges and Government Hostels.
Express Tribune
04-02-2025
- Business
- Express Tribune
Gold maintains momentum, jumps Rs1,900/tola
Listen to article KARACHI: Gold prices in Pakistan surged on Tuesday, reflecting the global trend of rising rates. In the local market, the per tola price of gold jumped by Rs1,900, reaching Rs294,300, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). This followed Monday's rise of Rs200 per tola, which had already set a then-all-time high of Rs292,400. Globally, gold prices also experienced an upward trend. According to APGJSA, the international price of gold reached $2,815 per ounce (including a $20 premium) after gaining $16 during the day. "The bullish momentum remains strong," said Adnan Agar, Director of Interactive Commodities. He noted that the international market hit a new all-time high of $2,840 per ounce earlier in the day before settling around $2,828, with a daily low of $2,807. Agar expects a possible correction when prices approach the $2,850-$2,860 range, though for now, the market maintains strong momentum. Over the past few hours, gold prices have increased by nearly $30, with the market hovering around $2,810 earlier in the evening. The key focus is on Friday's employment data, which could determine the market's next movement. The dollar fell 0.5%, making gold less expensive for other currency holders. Meanwhile, the Pakistani rupee saw a slight appreciation against the US dollar, rising by 0.03% in the interbank market on Tuesday. By the end of the trading session, the rupee closed at 278.96, marking an increase of 8 paisa compared to the previous day's closing rate of 279.04, according to the State Bank of Pakistan (SBP). Additionally, the government of Pakistan raised Rs544.63 billion through the auction of Treasury Bills (T-Bills) and Government of Pakistan Ijarah Sukuk (GIS). The SBP secured Rs452 billion in its latest T-Bill auction, surpassing its target of Rs450 billion, with total bids amounting to Rs918 billion. The cut-off yields increased across all tenures, with the 3-month T-Bill yield rising by 21 basis points to 11.7998%, the 6-month yield up by 10 basis points to 11.5048%, and the 12-month yield climbing by 20 basis points to 11.5898%. The Pakistan Stock Exchange raised Rs92.63 billion for the Ministry of Finance through the 18th auction of GOP Ijarah Sukuk held on February 4, 2025. The auction received total bids worth Rs256.62 billion. The fixed rental rate for 3-year and 5-year Sukuks remained unchanged at 11.4990% and 11.9900%, respectively, while no bids were received for the 10-year GIS. The variable rental rate for the 3-year and 5-year Sukuks was 11.1001% (-0.79% from the reference rate) and 11.2301% (-0.66% from the reference rate), respectively.
