PTB Warns of Strict Action Against Illegal Tobacco Purchases

PESHAWAR: (Finance Reporter) – Chairman Pakistan Tobacco Board (PTB) Muhammad Shahid Hussain has announced a zero-tolerance policy against illegal tobacco purchases, warning companies, dealers and other stakeholders that violations will result in strict legal action.

The chairman said the purchase of tobacco below officially prescribed rates, buying from undeclared purchase centres and delaying payments to growers would not be tolerated under any circumstances.

He warned that tobacco purchased illegally could be seized and that the concerned purchase centre could also be sealed in accordance with the law. The seized tobacco may subsequently be auctioned under the applicable legal framework.

According to the PTB, Chairman Muhammad Shahid Hussain conveyed the board’s position through the PTB secretary during a Khyber Pakhtunkhwa Assembly committee meeting held on August 17 under the chairmanship of Special Committee Chairman Abdul Karim.

The same position was reiterated during a meeting of a committee constituted by the Khyber Pakhtunkhwa Chief Minister, chaired by Adviser to the Finance Minister Muzammil Aslam.

The PTB chairman also highlighted the powers granted to Assistant Commissioners under a provincial letter issued in 2023. Under the notification, the officers were given the authority of Special Magistrate First Class along with price-control powers, which can be used to address violations involving tobacco purchases.

Muhammad Shahid Hussain has requested the provincial government to take disciplinary action under the relevant provisions, including the 2023 provincial notification, the Terms of Reference of Governor Inspection Teams (GITs) and the Price Control Act, 1977.

He said effective coordination with district administrations was essential to prevent unlawful tobacco purchases and protect growers from exploitation.

The chairman further noted that the PTB’s position had not been adequately reflected in the official minutes of one of the meetings. Consequently, the board submitted a formal letter to the relevant authorities, requesting that its stance be incorporated into the official record and that appropriate action be ensured.

In separate communications, the chairman approached the Chief Secretary Khyber Pakhtunkhwa, Secretary Home, Additional Chief Secretary Home, Secretary Finance, Secretary Excise and Special Committee Chairman Abdul Karim, calling for strict action against illegal tobacco purchases.

The letters also urged authorities to seal unauthorised purchase centres and take effective measures for the lawful auction of confiscated tobacco.

Muhammad Shahid Hussain said the board would take firm action against those involved in exploiting tobacco growers, violating prescribed purchase rates or conducting unauthorised transactions.

He stressed that the rights and interests of tobacco growers would remain a priority throughout the ongoing marketing season, adding that no leniency would be shown towards violations.