At a meeting with Federal Minister for Commerce Jam Kamal Khan, Pakistani tobacco exporters warned that the current tax structure “poses a challenge,” especially for smaller players, and urged the government to adopt a more competitive taxation model. Exporters said the current tax structure—which includes federal excise duties, provincial excise duties, federal tobacco taxes, and a provincial development tax—totals Rs480.15 ($1.68) per kg.
“They said this cost poses a challenge, particularly for smaller exporters and suggested that a more competitive taxation model would help enhance Pakistan’s position in the global tobacco market,” exporters said in a statement. The exporters emphasized that tobacco, like other agricultural commodities such as sugarcane, cotton, and citrus, should be supported through market-based policies. They noted that annual price adjustments are mandatory under current regulations, which can affect competitiveness in export destinations.
The tobacco exporters also called for the revival of the Pakistan Tobacco Board to support coordinated efforts in export promotion and policy facilitation. In response, Kamal proposed the establishment of a Sectoral Council for Tobacco, similar to other existing sectoral councils, to provide a structured platform for industry dialogue and representation.
Pakistan’s tobacco exports reached $158.35 million in the current fiscal year (July–April), with promising growth in markets such as Belgium, UAE, Greece, and the Philippines.
