ISLAMABAD, May 17 — Federal Law Minister Azam Nazeer Tarar on Friday assured the National Assembly that no new regulations or taxes have been imposed on the tobacco sector, particularly on the crop or landowners in Khyber Pakhtunkhwa.
Addressing the House in response to concerns raised by Members of the National Assembly Syed Waseem and Asad Qaiser, the minister reaffirmed the government’s commitment to safeguarding the interests of farmers.
Tarar emphasized that under the leadership of Prime Minister Shehbaz Sharif, the federal government remains focused on promoting agriculture and ensuring that farmers cultivating vital crops, including tobacco, are not burdened with unnecessary levies. He clarified that while there are discussions underway regarding raw tobacco, no policy changes or fiscal measures have been enacted that would directly affect crop producers or landowners.
He further explained that the government’s regulatory role begins only after the crop moves from the farm into the processing and commercial stages. This is where accountability is essential, especially considering the vast gap in tax contributions within the tobacco industry.
Highlighting the economic imbalance, Tarar revealed that two major multinational tobacco companies hold 44% of the market share and contribute over Rs 250 billion in taxes annually. In contrast, local firms, which dominate 56% of the market, contribute just slightly above 3%, resulting in a staggering estimated tax gap of Rs 200 to 300 billion.
While reiterating the government’s support for the agriculture sector, Tarar stated that improving seed quality, crop protection, and farmer access to resources remain top priorities. He said the agriculture sector is the backbone of the economy and that the government recognizes the need to empower farmers through modern techniques and policy stability.
The minister also stressed that industries, especially those generating significant profits from commodities like tobacco, must play their due role in strengthening the national economy.
In closing, Tarar reassured farmers that the federal government has no intention of placing additional financial pressure on those cultivating the tobacco crop and that their concerns are being heard and addressed at the highest level.