SWABI, May 18: Tobacco dealers have rejected the imposition of development tax on Virginia and White Patta tobacco and demanded its immediate withdrawal.

The NWFP government has imposed Rs2 per kg as development tax on Virginia and White Patta tobacco.

All Pakistan Tobacco Dealers Association President Iftikhar Ahmad Khan and General Secretary Iqbal Khan told Dawn here on Sunday that two days ago, they had held a detailed meeting with dealers and growers, who opposed the new tax.

The president said they had attached great hopes to the MMA government that it would take steps for the protection of growers’ rights by issuing agreements to genuine farmers, increasing tobacco quota, spending cess funds on the uplift of tobacco growing areas and fixing product’s prices according to the tobacco marketing law, MLO 487.

The general secretary threatened that if the government did not withdraw the tax, the dealers and growers would have no option but to stage protest demonstration across the NWFP. The association had already launched a drive for educating the growers about the development tax and its negative impact on their financial position.

He said the federal government received about Rs18 billion each year through different taxes on tobacco, whereas no other crop in the country contributed such an amount to the national exchequer. Even then, this crop was targeted on one pretext or the other, he added.

Provincial general secretary of the Anjuman-i-Kashtakaran, Ismail Jan Khan, said on the occasion that instead of targeting growers, the government should impose taxes on luxurious items.

He urged growers to forge unity in their ranks to force the government for the tax withdrawal.