‘Low price of tobacco causing billions of rupees loss’

Every year the country has been facing a loss of billions of rupees due to the constant lowering of tobacco prices, sources said. As per details, the Secretary Tobacco Board while over exceeding his power and bypassing the Commerce Ministry and the Pakistan Tobacco Board in 2010-2011, decreased the price of tobacco by Rs. 33 from its original price and the country faced a direct loss of billions of rupees.

Tobacco had been contributing billions of rupees in direct and indirect taxes every year and instead of providing some relief to the tobacco growers and dealers, they have been subjected to additional taxes, which were adding to their woes amid raising the cost of inputs, the sources said. The prices of different agriculture inputs during the last three years had gone higher by about 100-150 per cent while the prices of tobacco had been increased marginally from Rs. 105 per kg to Rs. 117 per kg and then Rs. 121 per kg.