SCCI ex-president criticises taxes on tobacco industry

SWABI: Liaqat Ahmad Khan, former president of the Sarhad Chamber of Commerce and Industry (SCCI), expressed concerns on Friday about the current excise duties imposed by the federal government, calling them unjust for both the tobacco business community and growers.

Briefing media persons about the new taxes introduced in the 2024-25 budget, Liaqat said that the federal government has imposed an excise duty of Rs390 per kilogram on tobacco. Additionally, the provincial government has imposed a separate excise duty of Rs50 per kilogram, further burdening the business community.

“We request clarification on the legal basis for this dual taxation system, as the imposition of multiple excise duties on the same product may not align with existing legislation,” he said.He also criticised the current 39 percent extra income tax on tobacco exports, describing it as a significant burden that would severely impact the export process.

“This high tax rate makes Pakistani tobacco exports less competitive in the international market,” he claimed.Liaqat urged a reevaluation of the tax structure to ensure a more balanced approach that promotes exports without compromising revenue generation.“We believe a more streamlined and transparent tax regime would benefit both the government and the tobacco industry,” he added.