ISLAMABAD: Representatives of labour unions and farmers/growers appreciated the government for enhancing the Federal Excise Duty (FED) on cigarettes, saying that the decision will strengthen the economy and improve Federal Board of Revenue (FBR) collection in 2022-23.

In a well-attended press briefing at National Press Club held here on Monday, Labour Federation President Ibrarullah, Kisan Board Pakistan General Secretary Abdul Samad Safi, Tobacco Growers Association of Pakistan Chairman Liaquat Yousafzai, Sarhad Agricultural and Rural Development Organization General Secretary Hussain Ahmed, Anjuman Muhafaz-e-Hakook-e-Kashtkaran President Nimat Shah Roghani and others said

that FED on cigarettes has protected the rights of the farmers.

This is the first press conference after mini-budget which supported the Federal Board of Revenue’s (FBR) decision to increase FED on cigarettes by 150 percent.

Abdul Samad Safi said some cigarette makers are trying to put pressure on the government through unknown farmer representatives that FED should be imposed on tobacco leaf. These companies, he said, are trying to monopolize the tobacco market. He said tobacco growers are already crippled and it is unrealistic to put the FED on tobacco leaf instead of cigarette packet.

“We the farmers are against transferring the FED from a cigarette packet to tobacco leaf which is unjust,” he said.

Ibrarullah said the transparent way to collect FED is through imposing it on a cigarette packet. Some manufacturers are trying to push the FED on tobacco leaf. He said this action will kill local industry, and make farmers and labourers unemployed.

“These multinational companies want to maintain their monopoly on tobacco market. They have replaced permanent workers with contract employees which is violation of internationally accepted labour laws,” he said.

Liaquat Yousafzai supported the FED on cigarette packs and said that the government should make sure that price of tobacco leaf increases with the increase in FED on cigarette packs so that farmers are relieved.

Hussain Ahmed said no organization from KP has opposed FED on cigarette and no one will. He said price of tobacco leaf should be increased. For many years, he said, tobacco farmers are struggling to increase their produce and the government decisions have supplemented their efforts. He demanded of the government to give subsidy on pesticides and fertilizers so that farmers grow better crops.

Naimat Shah Roghani said that the increased FED is the right decision by the government on cigarette pack. “If multinational companies want to transfer FED on tobacco leaf, we will strongly condemn it and hold protests. Backed by these companies, unknown farmers have issued statements to propose the FED on tobacco leaf. No farmer can make such a demand. This action will destroy crops and cripple farmers. Productivity will be reduced. Uncertainty will be created and unemployment will grow.

Copyright Business Recorder, 2023