Philip morris (pakistan) ltd. announces financial results for nine months ended September, 2021

KARACHI: Philip Morris (Pakistan) Limited (PMPKL) posted a Profit After Tax of Rs2,071 million for the nine months ended September 30, 2021, compared to a Profit After Tax of Rs1,828 million for the same period last year. The company's net turnover, on the other hand, stood at Rs12,789 million during the stated period reflecting an increase of 7.5% versus the same period last year. During these nine months, the company’s contribution to the national exchequer, in the form of excise duty, sales tax and other government levies, stood at Rs20, 449 million that is higher by 17.4% compared to the same period last year, reflecting 60.9% of nine months gross turnover. The unchanged excise rate on cigarettes as laid out in the Federal Budget 2021/22proved to be fruitful that helped add to FBR’S record revenue collection. PMPKL’S contribution to the National Exchequer during the first quarter ended September 30, 2021 of the ongoing fiscal year 2021/22 stood at Rs6,014 million– higher by 22.1% versus the prior period. No change in excise rates also led to consumer price stability of the tax paying cigarette brands, however, the persistent price gap of over 200% between compliant tax paid and nontax paid brands continue to have a negative impact on the national treasury which are continue selling lower than the minimum price for the purposes of levy and collection of federal excise duty i.e. Rs 63/pack, hence, invalidating the purpose of imposing levies for tobacco control. As a result, non-tax paid brands continues to have an annual loss of Rs77 billion estimated to the national exchequer.