Pakistan Tobacco Company (PTC) has called for a stable and predictable taxation system, saying it is essential to support formal businesses and discourage the informal market.
The demand came during a meeting held on Monday between Finance Minister Muhammad Aurangzeb and a PTC delegation at the Finance Division.
The delegation was led by Usman Zahur, Area Director (APMEAC) and General Manager Pakistan, and included senior officials from marketing, corporate affairs, and fiscal affairs.
During the meeting, the finance minister shared details of the government’s wider fiscal reform plan. He said the focus remains on improving tax collection, widening the tax net, and strengthening transparency through digital systems.
Aurangzeb noted that reforms in tax administration are being carried out through improvements in people, processes, and technology. According to him, these steps are aimed at boosting compliance, reducing revenue leakages, and ensuring fair tax collection across different sectors.
He also pointed out that stricter enforcement measures, supported by digitisation and monitoring tools, are already helping improve compliance in several industries. These include sugar, cement, beverages, textiles, and tobacco, where action against illegal activity has been stepped up.
The PTC delegation appreciated the government’s reform efforts and shared its views on issues affecting the tobacco sector. These included excise taxation, market conditions, illicit trade, and export competitiveness.
They acknowledged recent enforcement actions against illegal operators and stressed the need for a stable taxation environment that can support long-term planning and growth in the formal sector.
Both sides also discussed broader regulatory challenges, sector competitiveness, and the need for stronger coordination between federal and provincial authorities to curb the informal market.
The finance minister reiterated that revenue mobilisation and effective enforcement remain key pillars of the government’s economic strategy.
He said that while policy consistency is important, all sector-specific suggestions will be reviewed in line with overall fiscal goals and national economic priorities.
The meeting also touched on export potential and investment opportunities in the tobacco sector and related value-added products. The delegation highlighted Pakistan’s role as a manufacturing base for certain goods and pointed to possible expansion in international markets.
Views were also exchanged on regulatory and taxation models used in other regional economies, particularly in relation to enforcement practices and compliance systems.
Aurangzeb welcomed the input from the delegation and reaffirmed the government’s commitment to ongoing engagement with the formal business sector. He said this engagement is important for encouraging investment, boosting exports, and supporting industrial growth.
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