Karachi, February 28, 2025 – Pakistan Tobacco Company (PTC) has reported cigarette sales worth Rs 355 billion for the financial year ending December 31, 2024.
Despite the strong revenue figures, the company’s net profit saw a slight decline due to high taxation.
According to the financial statement submitted to the Pakistan Stock Exchange (PSX) on Friday, PTC recorded a total turnover of Rs 355.51 billion in 2024, reflecting an increase from Rs 315.84 billion in the previous year. However, the government remained the largest beneficiary of PTC’s revenue, collecting Rs 256.15 billion in duties and taxes, which accounts for nearly 72% of total sales.
PTC’s gross profit for the year remained relatively stable, standing at Rs 59.84 billion, compared to Rs 59.48 billion in 2023. However, the heavy taxation significantly impacted the company’s net profit, which fell to Rs 27.78 billion in 2024, down from Rs 28.96 billion in the preceding year.
A closer look at PTC’s tax contributions reveals that the company paid Rs 179.48 billion in Federal Excise Duty (FED), Rs 54.95 billion in sales tax, and Rs 21.72 billion in income tax. The high tax burden highlights the government’s reliance on cigarette sales as a major revenue stream, despite ongoing public health concerns regarding tobacco consumption.
The taxation policies have not only reduced PTC’s profit margins but have also impacted the company’s earnings per share (EPS), which stood at Rs 108.74 for 2024, compared to Rs 113.55 in the previous year. The increasing tax rates on tobacco products continue to challenge PTC’s profitability, affecting its ability to reinvest in operations and expansion.
Industry experts note that while PTC’s sales figures remain strong, the persistent rise in taxation could eventually impact cigarette demand and company profitability in the long run. The debate over balancing government revenue collection and public health concerns continues, with stakeholders closely monitoring how future fiscal policies may shape the industry.
As the largest player in Pakistan’s tobacco sector, PTC’s financial performance remains crucial to the government’s revenue structure. However, with increasing regulatory scrutiny and potential future tax hikes, the company may face further challenges in maintaining its profit levels in the coming years.