ISLAMABAD: The Pakistan Tobacco Board (PTB) has urged Finance Minister Senator Muhammad Aurangzeb to reconsider the Federal Cabinet’s decision to dissolve the organization and transfer its core functions to regional authorities.
In a letter to the Finance Minister, PTB officials condemned the move, calling it unconstitutional and illegal. They say that the decision to dissolve the PTB and transfer its functions to regional authorities violates legal provisions.
Established under the Pakistan Tobacco Board Act, 1968, PTB is a self-established federal body responsible for promoting the cultivation, manufacturing and export of tobacco products. This law, passed in 1968, along with subsequent regulations, governs the tobacco industry in Pakistan.
Officials stress that tobacco has always been treated as a federal subject because of its importance to domestic trade, finance and industry. They warn that transferring these functions to the provinces without new legislation could create conflicts over tobacco cultivation, production, exports, taxes and pricing.
They pointed to international examples, such as China, India and Zimbabwe, where tobacco is managed as a federal subject because of its economic importance. In addition, tobacco exports from Pakistan have grown significantly, from $42 million in 2019-2020 to $108 million by December 2024.
The PTB also highlighted that the Federal Board of Revenue (FBR) has collected over Rs. $237 billion in excise duty and sales tax from the tobacco sector in the current fiscal year. PTB is expected to remit up to Rs. 600 million in taxes during the fiscal year 2024-2025
Citing a 2012 clarification from the Law and Justice Division, the PTB asserted that the Pakistan Tobacco Board Act falls within the federal legislative domain, as defined in the Constitution. The letter also warned that shifting tobacco-related functions could disrupt tax collection and regulatory processes.
In light of these concerns, PTB officials urged the empowered SRC to reconsider its decision in the greater interest of the country.