By Muhammad Asad Tahir Bhawana ISLAMABAD, June 06 (INP-WealthPK): Tobacco industry is one of the top contributors to Pakistan’s tax totals as almost half of about $2 billion it generates in revenues annually goes to the national kitty in shape of different levies, reports WealthPK. This tax contribution can also be attributed to a constant rise in exports of tobacco and its products year-on-year. Pakistan has exported tobacco products worth $44.165 million so far in the ongoing fiscal year 2022 compared to $27.799 million the previous year, thus recording a 58.8% growth. On a month-on-month basis, tobacco exports also rose by 54% in April 2022 compared to March 2022. According to a report of the Pakistan Tobacco Board (PTB), the sector’s regulator, different companies, dealers and agents exported 15 million kilogrammes of tobacco from 2021 till February 4, 2022, earning $50.7 million for the country in foreign exchange. Manufacturing of tobacco products is heavily regulated by the federal government as around Rs10 billion is paid to around 23,000 farmers by the 21 factories that generate about Rs300 billion income. The government collects Rs114 billion in taxes, including sales tax and federal excise duty. In Pakistan, 1.2 million people are associated with tobacco production, with over 75,000 labourers hired by cigarette manufacturing factories, including 2,033 by the Pakistan Tobacco Company, a subsidiary of British American Tobacco and Phillip Morris International. The total number of outlets selling cigarettes in Pakistan exceeds 600,000. These include general stores, high-end stores, kirtan or paan shops, hawkers, corner stores, petro-marts, hotels, restaurants and cafes. About 45 million kilogrammes of tobacco is produced each year in Pakistan, enough to produce 45 billion sticks. The PTB always sets the price purchasing companies pay to the farmers for their produce. Phillip Morris and Pakistan Tobacco Company purchases 36 million kilogrammes of the country's annual tobacco produce. The remainder goes to 51 different local companies. In Pakistan, tobacco taxes serve two purposes – to discourage smoking and raise revenues. Tobacco and related products are subject to a variety of taxes. Tobacco revenue is largely derived from the federal excise duty, accounting for almost 80% of the total revenue gotten from tobacco industry. Besides, the provincial governments levy a development cess on tobacco production. Because of small production base, the tobacco development cess generates relatively little revenues. According to a World Health Organisation’s report, cigarettes are relatively cheaper in Pakistan than its neighbouring countries.