Pakistan Tobacco Board Ordinance, 1968

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THE PAKISTAN TOBACCO BOARD ORDINANCE, 1968  
 
 
 
CONTENTS 
PREAMBLE 
1 Short title, extent and commencement 
2 Definitions 
3 Constitution of the Pakistan Tobacco Board 
4 Terms of members, etc 
5 Vacancy, etc., not to invalidate the proceedings of the Board. 
6 Functions of the Board 
7 Control of the Board 
8 Fixation of prices 
9 Levy of cess 
10 Power to borrow 
11 Keeping of accounts and audit and annual reports 
12 Constitution of the Tobacco Development Committee 
13 Functions of the Committee 
14 Grants and loans by Government to the Board 
15 Keeping of accounts 
16 Appointment of officers, etc 
17 Export allotment and its distribution. 
18 Control of export of tobacco and tobacco seeds 

 
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19 Registration of contracts 
20 Power to prohibit transportation, storage or sale 
20 A Power to direct Purchase 
21 Power to call for information, etc 
22 Delegation of powers 
23 Power to exempt 
24 Penalties 
25 False statement 
26 Protection of action taken in good faith 
27 Cognizance of offences 
28 Special provision regarding fines 
29 Presumption as to orders 
30 Power to make rules 
31 Power to make bye­laws 
 
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THE PAKISTAN TOBACCO BOARD ORDINANCE, 1968 
1ORDINANCE NO. I OF 1968 
[8th February, 1968] 
An Ordinance to provide for the establishment of Tobacco Board for the promotion of the  
cultivation, manufacture and export of tobacco and tobacco products.  
 WHEREAS it is expedient to provide for the establishment of a Tobacco Board for the 
promotion of the cultivation, manufacture and export of tobacco and tobacco products and for matters 
ancillary thereto; 
 AND WHEREAS the national interest of Pakistan in relation to economic and financial 
stability of Pakistan within the meaning of clause (2) of Article 131 of the Constitution requires 
Central legislation in the matter; 
 AND WHEREAS the National Assembly is not in session and the President is satisfied that 
circumstances exist which render immediate legislation necessary; 
NOW, THEREFORE, in exercise of the powers conferred by clause (1) of Article 29 of the 
Constitution and of all other powers enabling him in that behalf, the President is pleased to make and 
promulgate the following Ordinance : — 
 1. Short title, extent and commencement.____(1) This Ordinance may be called the Pakistan 
Tobacco Board Ordinance, 1968. 
 (1) It extends to the whole of Pakistan.  
 (2) It shall come into force at once.   
 2. Definitions. In this Ordinance, unless there is anything repugnant in the subject or 
context,___ 
(a)  “Board” means the Pakistan Tobacco Board constituted under section 3 ; 
(b)  “Committee” means the Tobacco Development Committee constituted under 
section 12 ; 
 (c)  “export” means to take out of Pakistan by any means to any place outside 
 Pakistan; 
(d)  “owner” includes any agent of an owner;  
(e)  “prescribed” means prescribed by rules made under this Ordinance; 
 
 
1 Approved by the National Assembly ofPakistan on the 14th May, 1968 and received the assent ofthe President on the 17th May, 1 968, see 
Gaz. ofP., 1968, Ext. (Rawalpindi), dated the 20th May, 1968, p. 323. 
 
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(f)  “tobacco” means the commodity which is made from the leaves of the plant 
“ nicotiana tobaccum 1[ or nicotiana rustica] ” and is commonly known as 
tobacco and includes adjacent tender stalks or green tobacco but does not 
include tobacco waste; 
(g)  “tobacco seed” includes seeds, roots, stumps, cuttings, buds and any living 
portion of the plant nicotiana tobaccum which may be used to propagate that 
plant or to manufacture cigarettes, cigars, cheroots, pipe tobacco, or chewing 
tobacco. 
3. Constitution of the Pakistan Tobacco Board. —(1) As soon as may be after the 
commencement of this Ordinance, the 2[Federal Government] shall constitute a Board to be called 
the Pakistan Tobacco Board consisting of the following members, namely:___ 
3[(a)  one member from the North­West Frontier Province or the Punjab to be elected 
by the Cigarette Manufacturers Association of Pakistan; 
(b) 4[six] members, 5[three] each from the North­West Frontier Province and the 
Punjab, to be nominated by the Provincial Government concerned from 
amongst the tobacco growers; 
(c)  one members to be nominated by the Federal Government on the 
recommendation of the Federation of Pakistan Chambers of Commerce and 
Industry;] 
(d) 6[ four] members, one to be nominated by each Provincial Government; 
(e) one member, being an officer serving under the 2[Federal Government] in the 
Ministry of Industries, to be nominated by the 2[Federal Government]; 
(f) two members to be nominated by the 2[Federal Government] 7[ ; ] 
8[(g)  one member, being an officer serving under the 2[Federal Government] in the 
Ministry of Agriculture and Works (Food and Agriculture Division), to be 
nominated by the 2[Federal Government] [ ; ] 9 
10[(h)  such other members as the Federal Government may nominate.] 
 
 
1Ins. by the Pakistan Tobacco Board (Amdt.) Act, 1973 (4 of1973) , s . 2. 
2 Subs. by the Pakistan Tobacco Board (Amdt.) Act, 1975 (19 of1975) , s . 2, for “Central Government” . 
3 Subs. ibid., s. 3, for cls . (a) , (b) and (c) which were previously amended by various enactments. 
4 Subs. by the Pakistan Tobacco Board (Amdt.) Ordinance, 1979 (11 of1979) , s . 2, for “four” . 
5 Subs. ibid., for “two”.  
6 Subs. by the Pakistan Tobacco Board (Amdt.) Act, 1975 (19 of1975) , s . 3, for “five” , which was previously amended. 
7 Subs. by the Tobacco Board (Amdt.) Ordinance, 1971 (5 of1971) , s . 2, for full­s top. 
8Added ibid   
9Subs. by the Pakistan Tobacco Board (Amdt.) Ordinance, 1982 (21 of1982) , s. 2, for full stop. 
10 Added ibid. 
 
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 (2) The 1[Federal Government] shall publish in the official Gazette the 2[ designations of the 
officers of the Federal Government or a Provincial Government nominated to be members of the 
Board and the names of the other persons elected or nominated to be such members] and the Board 
shall be deemed to be constituted upon such publication. 
 (3) The 1[Federal Government] shall appoint one of the members nominated by it under clause 
(f) of sub­section (1) to be the Chairman of the Board. 
 (4) The Board constituted under sub­section (1) shall be a body corporate by the name of the 
Pakistan Tobacco Board, having perpetual succession and a common seal, with power to acquire, 
own and dispose of any property and shall, by the said name, sue and be sued. 
 4. Terms of members, etc.___(1) A member of the Board shall, subject to the provisions of 
this section, hold office for two years and shall be eligible for re‑election or re‑nomination. 
 (2) When a member ceases to reside in Pakistan or becomes otherwise incapable of acting 
as such, the 1[ Federal Government] shall declare the seat of the member to be vacant. 
 3[(2A) If a member elected or nominated under clause (a) ,  clause (b) or clause (c) of 
sub­section (1) of section 3 absents himself from three consecutive meetings of the Board without the 
leave of the Chairman thereof, his seat shall become vacant.] 
 (3) When the seat of a member becomes vacant under sub­section (2) 3[ or sub­section (2A) ] , 
or by reason of resignation or death, the vacancy shall be filled for the remainder of the terms of such 
member by election or nomination of another person in his place in the same manner as such member 
was elected or nominated. 
 (4) Where any authority or body entitled to do so fails to elect or nominate a member within 
the prescribed time, the 1[Federal Government] may nominate a person to fill the seat of such 
member, and the person so nominated shall be deemed to have been elected or nominated by such 
authority or body. 
 5. Vacancy, etc., not to invalidate the proceedings of the board. No act or proceedings 
of the Board shall be invalid merely on the ground of the existence of any vacancy in, or any defect in 
the constitution of, the Board. 
 6. Functions of the Board. The functions of the Board shall be— 
(a)  to regulate, control and promote the export of tobacco and tobacco products 
and to fix grading standards, 
(b)  to undertake and assist research connected with to bacco industry, impart 
training in tobacco testing and generally to take measures in the interest of 
the tobacco industry, 
 
 
 
 
 
 
1Subs. by the Pakistan Tobacco Board (Amdt.) Act, 1975 (19 of1975) , s . 2, for “Central Government” . 
2Subs. by Act 19 of1975, s . 3, for “names of all the members of the Board” . 
3Ins.ibid., s.4. 
 
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(c) to render assistance for the development of the existing and new tobacco growing 
areas and establishment of model farms, to organise and assist special research 
connected with tobacco cultivation and generally to render assistance for 
improving tobacco production. 
(d) to collect statistics on any matter relating to tobacco and tobacco industry, 
and 
(e) to perform such other function as the 1[Federal Government] may, from time 
to time, direct. 
 7. Control of the Board.___(1) The Board shall be subject to the superintendence and control 
of the 2[ Federal Government] and shall be guided, in the discharge of its functions, by such general or 
special instructions as may, from time to time, be given to it by the 1[Federal Government]. 
 (2) The records of the Board shall be open to inspection by any officer authorised in this 
behalf by the 1[Federal Government]. 
 (3) The 1[Federal Government] may cancel, suspend or modify, as it thinks fit, any act of the 
Board. 
 8. Fixation of prices.___(1) The 1[Federal Government] may, by notification in the official 
Gazette, fix the minimum prices below which, and the maximum prices above which, tobacco of 
various grades shall not be bought or sold for consumption within Pakistan or for export ; and 
different prices may be fixed in respect of different areas. 
(2) No person shall buy or offer to buy or sell or offer to sell tobacco at any price below the 
minimum or above the maximum fixed under sub­section (1) . 
 9. Levy of cess.___(1) For the purposes of this Ordinance, there shall be levied and collected 
in such manner as may be prescribed a cess on tobacco produced in Pakistan at such rate or rates, 
not exceeding three per cent ad valorem, as the 1[Federal Government] may by notification in the official 
Gazette, specify in this behalf; and the proceeds of the cess, after deducting the cost of collection, if 
any, shall be paid to the Board. 
 2[ (1A) The 1[Federal Government] may, from time to time, by notification in official Gazette, 
fix, for the purpose of levying a cess under sub­section  (1), tariff values of tobacco produced in 
Pakistan and may there tariff values for the time being in force. 
 (1B) Different tariff values may be fixed for different classes or descriptions of tobacco.] 
 (2) The Board shall apply the proceeds of the cess paid to it under sub­section (1) for meeting the 
expenses which may be necessary for the performance of its functions under this Ordinance including 
expenses for contributing towards a contributory provident fund constituted and maintained in such 
manner as may be prescribed for the benefit of the employees of the Board. 
 
 
 
 
 
1Subs. by the Pakistan Tobacco Board (Amdt.) Act, 1975 (19 of1975) , s . 2, for “Central Government” . 
2Sub-sections (1A) and (1B) Ins . by the Pakistan Tobacco Board (A mdt.) Act, 1971 (5 of 1971) , s. 3. 
 
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 10. Power to borrow. The Board may, subject to any rules made in this behalf, borrow 
money for any purpose for which it is authorised under section 9 to expend the proceeds of the cess. 
 11. Keeping of accounts and audit and annual reports. ___(1) The Board shall keep 
regular accounts of all moneys received, borrowed and expended by it. 
 (2) The accounts of the Board shall be audited every year by auditors approved in this behalf 
by the 1* * * Auditor‑General of Pakistan. 
 (3) The auditors shall submit to the Board and to the 2[Federal Government] a statement of the 
accounts audited by them together with a report stating therein any irregularity noticed in the 
accounts or any objection to any expenditure. 
 (4) The Board shall, as soon as may be after the close of a financial year, publish an annual 
report of its activities during that year together with a statement of its accounts. 
 12. Constitutions of the Tobacco Development Committee. ___(1) The 1[Federal 
Government] may set up a Committee of the Board, to be called the Tobacco Development 
Committee, consisting of___ 
(a)  the Chairman of the Board; 
(b)  One member to be appointed by the 2[Federal Government] from amongst the 
members elected to the Board under clause (a) of subsection (1) of section 3; 
3[(c)  one members to be appointed by the Federal Government from amongst the 
persons nominated to the Board under clause (b) of sub­section (1) of section 
3; 
(d)  one member to be appointed by the Federal Government from amongst the 
persons nominated to the Board under clause (d) of sub­section (1) of section 
3.] 
 (2) A member of the Committee shall cease to be so when he ceases to be a member of 
the Board. 
 (3) The Board may, with the previous approval of the 2[Federal Government], grant such 
allowances to a member of the Committee, not being a Government Servant, as it may think fit. 
 13. Functions of the Committee. The Committee shall execute the policies of the Board in 
the matter of rendering assistance in the development the existing and of new tobacco growing areas and 
establishment of model tobacco farms in accordance with such schemes as may be approved by the 
2[Federal Government], render assistance to cultivators to improve their production, and perform 
such other functions as the Board may, with approval of the 2[Federal Government], direct. 
 
 
 
 
 
1The words “Comptroller and” Omitted by the Federal Laws (Revision and Declaration) Ordinance, 1981 (27 of1981) , s. 3 and Sch., II. 
2Subs. by the Pakistan Tobacco Board (A mdt.) Act, 1975 (19 of1975) , s . 2., for “Central Government”. 
3Subs. by the Pakistan Tobacco Board (A mdt.) Ordinance, 1975 (19 of1975) , s. 5, for cls. (c) and (d). 
 
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 14. Grants and loans by Government to the Board .___(1) The 1[Federal Government] 
may make grants or give loans to the Board to be placed at the disposal of the Committee for 
carrying out the functions of the Committee. 
 (2) The 1[Federal Government] may, subject to such conditions as it may impose, authorise the 
Committee to give, out of the funds placed at its disposal, loans to any person for the improvement 
and expansion of tobacco farms. 
 15. Keeping of accounts.___(1) The Committee shall keep accounts of all moneys received and 
expended by it. 
 (2) The accounts maintained by the Committee shall be audited by the auditors appointed for the 
purpose by the Board with the previous approval of the 1[Federal Government]. 
 (3) A statement of the accounts audited shall be furnished by the Committee to the Board and 
to the 1[Federal Government] as soon as may be after the end of each financial year. 
 16. Appointment of officers, etc.  The Board may, subject to the approval of the 1[ 
Federal Government], appoint such officers, advisers and other employees as may be necessary 
for the efficient performance of the functions of the Board and of the Committee. 
 17. Export allotment and its distribution .___(1) The 1[ Federal Government] may, 
after consultation with the Board, by notification in the official Gazette, fix for each year the 
export allotment of tobacco and tobacco products and shall distribute the export allotment so fixed in 
such manner as it may deem fit. 
 (2) Every person shall export the full amount of his share of the export allotment during the 
year to which the allotment relates. 
 18. Control of export of tobacco and tobacco seeds.___(1) No tobacco or tobacco product 
shall be exported except under a licence issued by or on behalf of the Board in such manner and 
subject to such conditions as may be prescribed. 
 (2) No tobacco seed shall be exported except under a permit issued by or on behalf of 
the 1[Federal Government]. 
 19. Registration of contracts.  The 1[ Federal Government] may, by general or special 
order, require any contract or class of contracts for sale of tobacco for export to be registered with 
such organisation and in such manner as may be specified in the order. 
 20. Power to prohibit transportation, storage or sale.  The 1[ Federal Government] 
may, by general or special order, prohibit any exporter or class of exporters from transporting, storing, 
buying, selling or otherwise disposing of any tobacco except in such manner and under such 
conditions as may be specified in the order. 
  
 
 
1 Subs. by the Pakistan Tobacco Board (A mdt.) Act, 1975 (19 of1975) , s . 2, for “Central Government” . 
 
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 1[20A. Power to direct purchase. In such circumstances, and subject to such conditions, 
as may be prescribed, and with a view to relieving distress amongst growers of tobacco or saving 
the market of a vital agricultural commodity from violent fluctuations, the 2[ Federal Government] 
may, by general or special order in writing, direct any manufacturer of, or dealer in, tobacco or any 
class of such manufacturer or dealers, to purchase, during such period or periods and from such area 
or areas, such quantity of toba cco, and to hold such minimum stock, as may be specified in the 
order.]. 
 21. Power to call for information, etc.___(1) The 2[Federal Government] may, at any time, 
by order, direct any person or class of persons to maintain such accounts and to furnish to the Board 
and to any officer or authority subordinate to the 2[Federal Government] such returns or other 
information relating to the cultivation, production, manufacture, sale or purchase of tobacco by such 
person or class within such time and giving such particulars as may be specified in the order; and 
every such order shall be published in the official Gazette. 
(2) Any person authorised in this behalf by the 2[Federal Government] or by the Board or any 
member of the Board authorised by the Chairman of the Board may, at all reasonable times, enter any 
tobacco curing yard or any place or premises where tobacco or tobacco waste is manufactured, 
stored, kept or exposed for sale and may require the production  for his inspection of any book, 
register, record or other paper kept therein and ask for any information relating to the cultivation, 
production, manufacture, storage or keeping for sale of tobacco or tobacco waste. 
 22. Delegation of powers . The 2[Federal Government] may, by notification in the 
official Gazette, direct that any power conferred upon it by or under this Ordinance shall, in relation 
to such matters and subject to such conditions, if any, as may be specified therein, be exercisable also 
by the Board. 
 23. Power to exempt.  The 2[Federal Government] may, by notification in the official 
Gazette, exempt any tobacco or tobacco products or any class thereof from the operation of all or any 
of the provisions of this Ordinance. 
 24. Penalties.______(1) Any contravention of the provisions of section 18 shall be punishable as if 
it were an offence under item No. 3[9 of the table below sub­section (1) of section 156 of the 
Customs Act, 1969 ( IV of 1969) and the provisions of section 4[157 and Chapters XVIII and XIX] of 
that Act shall apply accordingly. 
 (2) Save as provided in subsection (1), any person who contravenes or fails to comply with any 
provision of this Ordinance or any order or direction issued thereunder shall be punishabl e with 
imprisonment for a term which may extend to three years, or with fine, or with both. 
 (3) Where any person contravening the provisions of this Ordinance is a company or a body 
corporate, every director, manager secretary, or other officer, and every agent and servant thereof 
and, in the case of an unlimited company or a company limited by guarantee, also every member 
thereof shall be punishable as if he had contravened the provisions of this Ordinance: 
 
 
1Ins . by the Pakistan Tobacco Board (A mdt.) Ordinance, 1972 (8 of1972) , s . 2. 
2Subs. by the Pakistan Tobacco Board (Amdt.) Act, 1975 (19 of1975) , s . 2, for “Central Government” . 
3Subs. by the Federal Laws (Revision and Declaration) Ordinance, 1981 (27 of1981) , s. 3 and Sch. II, for “8 ofs ection 167 ofthe Sea Customs 
Act, 1878” . 
4Subs. ibid., for “168 and Chapter XVI”.