The Tobacco farmers and laborers in Khyber-Pakhtunkhwa have appreciated the withdrawal of the advance tax of Rs500 per kg on tobacco crops.
Reportedly, this withdrawal has caused an increase of 137.5% in exports of tobacco crop in the first month of the current fiscal year.
Speaking at a press conference at the National Press Club, farmers and laborers recalled how the problems faced by them was taken up by the government, particularly the advance tax on tobacco leaf, which hurt the business of the entire tobacco industry.
The issue was then taken to the Federal Board of Revenue (FBR) prior to the budget announcement for the fiscal year 2020-21 and subsequently, the advance tax was abolished with the aim of assisting the farmers, laborers, and the tobacco industry.
“We have fulfilled our promise by helping the country to increase tobacco exports,” said the KPK’s tobacco farmers. “Pakistan is producing high-quality tobacco crop and there is massive potential for export,” they added.
They hoped that the export would bring in a high number of foreign exchange which will ultimately help in creating more job opportunities for the youth of the country.
They also urged the multinational tobacco companies to reinstate all the laid-off workers as the farmers had purchased the tobacco in large quantity this year.
According to the Pakistan Bureau of Statistics, Pakistan’s tobacco exports increased 137.5% to $2.17 million in July 2020 compared to $0.91 million in the same period of the previous year.
In terms of volume, exports of tobacco rose 151.9% as the country shipped 675 tons in July 2020 compared to 268 tons in the same month of last year the data of Pakistan Bureau of Statistics revealed.