A leading multinational cigarette manufacturing company has contributed over Rs 23 billion to the Federal Board of Revenue (FBR) in the form of duties and taxes during the first quarter (July-March) of 2016. According to an announcement of the company here Wednesday, Pakistan Tobacco Company has announced its results for the first quarter of 2016, declaring a net turnover of Rs 11,547 million, after tax profit of Rs 2,813 million and earnings per share of Rs 11.01.
Despite a decline in volume, the gross turnover has increased as a result of the excise led price increases in June and December 2015. While PTC's contribution to the government revenues has increased over last year, illegal cigarette trade is becoming an ever increasing threat to sustainability of the legitimate tobacco sector and the revenues it contributes to the exchequer.
The Nielsen report on Illicit Cigarette Trade in Pakistan, 2015 states that an illicit brand sells at an average price of Rs 27 per pack vs. Rs 57 per pack for the legitimate, tax-paying brands. If this continues unabated the illicit cigarette trade is expected to cause a loss of more than Rs 24 billion to the national exchequer within this calendar year, it added.
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