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Cigarette cos contributed more to revenue amid challenges

Cigarette cos contributed more to revenue amid challenges

ISLAMABAD: The documented cigarette companies’ contribution on account of excise duty, sales tax and income tax has increased during 2013 despite serious challenges of high taxation on tobacco industry and issues of illegal trade.

As per details, the list of 100 top corporate taxpayers issued by the Federal Board of Revenue contains one of the leading cigarette giants which reflects the sector’s performance amid serious challenges being faced by the tobacco sector.

A wide range of performance and profitability was witnessed across many industrial and economic sectors, during the recent round of financial results, ranging from some highly profitable companies while others lagging far below. In contrast to certain highly profitable companies, other corporate giants like Pakistan Tobacco Company posted modest profits.

Besides high taxation imposed on the tobacco industry, the sector currently is also suffering from high levels of illegal trade, taking a severe toll on the industry’s profitability and costing government more than Rs90 billion over the past five years.