The loss was mainly due to the management's decision to reorganize its operational footprint by closing its factory in Kotri, which was essential to ensure long term sustainability of the business in
Excluding the one-off impairment and employee separation costs, which was the result of the closure of the Kotri factory and GLT Voluntary Separation Scheme, the company would have recorded an operating profit before tax of
During the year, the compliant [taxpaying] tobacco industry faced challenges from the non-paid illicit sector as the government continued to impose heavy excise increases with limited enforcement. The government announced an increase in FED in value tier of 46pc in
These excessive excise tax increases pose serious threats to the sustainability of the taxing industry volume base and are detrimental for the government revenues in the long run. Therefore, an equitable tax structure with strict implementation of enforcement measures is necessary to restrict illicit sector while ensuring the sustainability of the compliant tobacco industry.
Commenting on the announcement, PMPKL Managing Director
© Pakistan Press International, source