Crop talk: CM signs off on new formula for tobacco cess distribution

Swabi’s share to be reassessed on basis of volume produced.


Our Correspondent March 29, 2015
According to a handout issued on Sunday, Khattak took the decision while presiding over a meeting at the CM Secretariat. PHOTO: EXPRESS

PESHAWAR: Chief Minister Pervez Khattak has approved the new formula under which tobacco cess will be distributed amongst the tobacco-producing districts of the province—with the exception of Swabi.

According to a handout issued on Sunday, Khattak took the decision while presiding over a meeting at the CM Secretariat.

During deliberations, Minister for Health and Information Technology Shahram Khan Tarakai, who is from Swabi, voiced concerns over the district’s share. The attendees were informed Rs219.63 million was distributed among the seven districts, with Swabi’s share fixed at Rs114.83 million during the fiscal year 2013-14. They were told the funds were utilised for uplifting the industry through infrastructural development.



Flanked by Tarakai, Minister for Excise and Taxation Mian Jamsheduddin Kakakhel, Minister for Revenue Ali Amin Gandapur and other cabinet members, the CM ordered a recalculation of the share for Swabi—the largest tobacco growing district of K-P. It was decided Swabi’s share would be based on the volume it produces instead of a fixed allocation.

It was also decided to conduct a preliminary study regarding the potential for cigar production in K-P.

Khattak said the 18th Amendment empowers provinces to regulate taxation over agricultural produce and safeguard the rights of their people. He said all taxes, other than the export tax charged by the K-P government, levied over tobacco should be abolished immediately.

He directed officials to ensure smooth regularisation of affairs pertaining to the crop, instructing them to establish a working relationship with the Pakistan Tobacco Board.

The CM ordered the provision of bulldozers and tractors to tobacco growers on subsidised rates and instructed the finance department to expedite the disbursement of funds in this regard.

Published in The Express Tribune, March 30th, 2015.

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