Senate Body For Maintaining Different Tax Ratio For Local, Multinational Tobacco Companies

Sumaira FH Published January 16, 2019 | 07:48 PM

Chairperson Senate Special Committee on Causes of Decline in Tax Collection of Tobacco, Kulsoom Perveen, Wednesday said local tobacco companies would be taxed according to their overall capacity and revenue generation

PESHAWAR, (UrduPoint / Pakistan Point News - 16th Jan, 2019 ) :Chairperson Senate Special Committee on Causes of Decline in Tax Collection of Tobacco, Kulsoom Perveen, Wednesday said local tobacco companies would be taxed according to their overall capacity and revenue generation.

Similarly, clear difference in tax ratio between multi-national companies (MNCs) and local tobacco companies would be maintained.

Kulsoom Perveen was taking to media persons after visiting different tobacco companies in Charsadda, Swabi, Nowshera and Mardan districts.

Members of Senate Special Committee Senator Dilawar Khan and Senator Hidayatullah Khan were also present.

She said recommendations regarding abolition Rs300 taxes imposed on local tobacco companies have been sent to the concerned committees and organizations.

She said, "We knew that local companies can't compete with international companies due to great resources with the latter" .

The chairperson maintained that issues regarding tax collection during transfer of tobaccos within a province would be taken up with officials of Federal board of Revenue.

Kulsoom Perveen said thousands of labourers were working on about 20,000 tobacco furnaces across the province and added the workers faced problems when local companies were brought under heavy taxes.

She said difference in taxes between MNCs and local companies would help promote employment opportunities and making tax recovery process simpler.

She said about Rs64billion reduction had been witnessed in tax recovery from tobacco sector which is great loss to the national economy.

Senator Dilawar Khan said that they were not against the MNCs and welcome their investment in the country.

He suggested that Parliament should discuss the affairs of MNCs dealing with tobaccos and local companies and suggest tax regimes after comparing their profits.