ISLAMABAD: The Economic Coordination Committee (ECC) on Monday deferred a proposal seeking approval for Minimum Indicative Prices (MIPs) of the tobacco crop and revised cess rates for fiscal year 2026-27.
The Ministry of National Food Security and Research presented the proposal during an ECC meeting chaired by Federal Minister for Finance and Revenue Muhammad Aurangzeb.
However, after reviewing and discussing the proposal, the committee concluded that the ministry needed to provide stronger justification and additional analysis before the ECC could consider approving the proposed changes.
Consequently, the committee deferred the agenda rather than taking a final decision on tobacco prices and cess rates.
ECC Seeks Stronger Rationale for Proposed Prices
The ECC directed the Ministry of National Food Security and Research to strengthen the rationale supporting its recommendations before bringing the matter back for consideration.
Moreover, the committee sought a detailed assessment of the proposed Minimum Indicative Prices for tobacco, which provide a benchmark for crop pricing.
The ministry will now have to review its calculations and provide further justification for the proposed rates when it resubmits the case to the economic decision-making body.
Ministry Asked to Review Production-Related Charges
In addition to tobacco prices, the ECC asked the ministry to provide proper analysis of the proposed production-related charges and revisions to cess rates for FY2026-27.
The committee did not announce a new date for reconsidering the proposal.
Therefore, the proposed tobacco MIPs and revised cess rates remain pending until the ministry submits an updated case addressing the ECC’s concerns.
The decision means the committee has neither approved nor rejected the proposed rates at this stage.
Instead, the ministry must now prepare a more comprehensive justification before presenting the matter again to the ECC for a final decision.
