Multinational cigarette companies have claimed that they pay almost all taxes collected from the industry.
Philip Morris Pakistan and Pakistan Tobacco Company (PTC) pay around 98 per cent of the total amount of taxes that the government collects from the industry concerned.
PTC Senior Corporate Affairs Manager Noor Aftab said, “We have about 65pc of the total cigarette market in Pakistan but we contribute 98pc to the [tax] revenue from this industry.”
He stressed that the third tax tier should not be abolished because it has a positive impact on the legal tobacco industry.
“The continuity of this system will lead to a gradual increase in tax collection over the years,” said Corporate Finance Head Mohammad Waqas Bhatti.