PTB seeks rule changes to promote tobacco export

Published: April 21, 2019
Email
PHOTO:REUTERS

PHOTO:REUTERS

ISLAMABAD: The Pakistan Tobacco Board (PTB) has requested the Federal Board of Revenue (FBR) to amend its rules in order to facilitate all commercial exporters of tobacco.

Under the present rules, the exporters having green leaf threshing (GLT) units are not liable to pay federal excise duty (FED). However, the exporters who do not have such units have to pay the duty on unmanufactured tobacco, which was hiked from Rs10 to Rs300 per kg through the Finance Supplementary (Amendment) Act 2018.

‘Pakistan must shift to high value-added exports’

The PTB is controlled by the Ministry of Commerce and Textile. In a letter sent to the FBR, a copy of which is available with The Express Tribune, the PTB requested amendment to the Federal Excise Duty Rules 2005 in order to facilitate the commercial exporters who do not have GLT units and have to pay a heavy duty on the export of tobacco.

According to documents, the PTB said Rule 82 of the Federal Excise Rules 2005, under chapter ‘Rules for maintenance of records and payment’ issued by the FBR, stated that GLT units had to issue a tax invoice at the time of movement of processed and unmanufactured tobacco.

The exporters who do not have GLT units would have to pay FED as outlined in Schedule 1 of the Federal Excise Act 2005. As per record available with the PTB, the commercial exporters with no GLT facilitates have exported unmanufactured tobacco worth $3 million annually over the past few years.

“Recently, some tobacco exporters approached the PTB and complained that they had confirmed export orders, but were unable to process them due to the imposition of a heavy FED,” said the PTB.

The tobacco board was of the view that the export of tobacco and tobacco products should not be restricted to GLT units only. It requested that Rule 82 may be amended to eliminate FED for all exporters.

Yarn export falls 24%: APTMA 

In a reminder letter sent to the FBR in April, the PTB again highlighted that commercial exporters, having no GLT units, were receiving orders for the export of tobacco in the wake of rupee depreciation.

It pointed out that Pakistan’s tobacco could now compete in the international market because of its competitive price, but SRO 1149 (1) 2018 did not allow exporters to sell tobacco in overseas markets. 

Published in The Express Tribune, April 21st, 2019.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.

Facebook Conversations

More in Business