ISLAMABAD – The Centre for Research and Dialogue (CRD) has asked the finance minister to take action against violations of the country’s tax laws by multinational cigarette companies.
The CRD pointed out blatant violations in a letter. This development comes as the Ministry of Finance struggles to broaden the tax net and plug the loopholes in the tax machinery.
The letter urged prompt action against the Federal Excise Act 2005 violations after the multinational cigarette companies introduced new variants of the same brand family at significantly lower prices.
According to the rules, no manufacturer or importer of cigarettes can introduce or sell a new variant of a cigarette brand at a price lower than the lowest actual price within the same brand family.
Despite this regulation, a multinational company has launched a new brand priced at Rs 164, substantially lower than its existing family brand, which is priced at Rs 212.
Amjad Qamar, Director of CRD, highlighted the implications of this violation, emphasizing that it not only breaches tax regulations but also contributes to making cigarettes more affordable, which is detrimental to public health and reportedly, 337500 people lost their lives due to tobacco-related diseases annually in Pakistan.
In his letter to the Finance Minister, Qamar has urged swift and decisive action to address this issue and uphold the integrity of tax laws to safeguard public health and ensure fair market practices.
