KARACHI: Philip Morris (Pakistan) Limited (PMPKL) posted a profit after tax of Rs 1.533 billion for the half year ended June 2022 showing a decline of 11 percent from the corresponding period last year due to higher taxation reflecting recording of super tax imposed at 10 percent during June’22 Finance Bill for the financial year ended December 31, 2021. (The tax Year 2022).

For the six months ended June 30, 2022, PMPKL recorded a net turnover of Rs 10.166 billion, reflecting an increase of 10.2 percent versus the same period last year (SPLY), this includes a domestic net turnover of Rs 9.175 billion, an increase of 1.5 percent versus SPLY, coupled with exports turnover of Rs 991 million, an increase of over 100 percent versus SPLY, reflecting the delayed exports at the end of 2021 on account of external supply chain constraints and were materialized in the first quarter of 2022.

PMPKL’s contribution to the National Exchequer, in the form of excise duty, sales tax, and other government levies, during the fiscal year ended June 30, 2022, (July 2021 to June 2022) stood at Rs 26.492 billion, reflecting an increase of 5.22 percent versus prior fiscal year.

Expressing his views on PMPKL’s financial performance, Roman Yazbeck, Chief Executive Officer and Managing Director at PMPKL said, “Pakistan’s economy is going through an unprecedented economic downturn due to the global and local economic crisis, coupled with the political instability in the country. The historical rupee devaluation, inflation and record hike in the policy rate is making the operating environment extremely difficult for all businesses”

“However, we would like to thank and congratulate the Government of Pakistan on the implementation of the Track and Trace System for the tobacco industry. With the effective enforcement and across-the-board implementation, we are hopeful that this initiative will go a long way incubating the illicit cigarette trade (i.e., 38% of the total market as per Oxford Economics) which is causing an estimated annual loss of Rs 80 billion (approximately) to the National Exchequer” he added.

Copyright Business Recorder, 2022