PTC contributes Rs. 89 billion to National Exchequer in 2016
PTC contributes Rs. 89 billion to National Exchequer in 2016; volumes decline as illicit cigarette trade grows to 40.6% of the total market in December 2016
Islamabad. A leading multinational cigarette manufacturing company, Pakistan Tobacco Company Ltd. (PTC), has contributed Rs. 89 billion to the National Exchequer in the form of Excise Duty, Sales Tax, Income Tax and Custom Duties during 2016.
PTC has announced its results for 2016 and from January to December, 2016, the Company posted a net turnover of Rs 44,867 million and earnings per share of Rs 40.55.
Illicit cigarette trade is currently the biggest challenge facing the legitimate industry, with a massive share of 40.6% of the total market. Not only does illicit cigarette trade negatively affect the legitimate industry but also negatively impacts Government revenues in the form of losses in potential revenues which for the year 2015/16 went up to the tune of Rs. 47 billion.
The need of the hour therefore is to ensure across-the-board enforcement of laws and regulations for all cigarette manufacturers in the country. This can help plug the gaping revenue leaks caused by the illicit cigarette industry for improved revenue contribution to the Government exchequer by the total industry.