Pakistan Tobacco Board Tender for Tobacco Cess Collection, 2026–27

Pakistan Tobacco Board invites bids for the contract to collect tobacco cess for the 2026–27 season. The contract period is from 12 November 2026 to 30 June 2027.

Bids must reach Pakistan Tobacco Board by 11:00 a.m. on 2 November 2026. Bids will be opened at 11:30 a.m. in the presence of bidders or their representatives.

Participants must bring their original National Tax Number certificate, original Computerized National Identity Card, a bank draft of Rs. 4,000,000 payable to the Secretary, Pakistan Tobacco Board, Peshawar, and evidence of income-tax filer status as of 10 October 2026.

Before bidding, prospective contractors should visit the relevant offices and familiarize themselves with tobacco-growing areas, production and cess collection arrangements. Income tax, withholding tax and other applicable taxes will be the contractor’s responsibility.

Tobacco Cess Rates

Cess collection will be governed by the applicable tobacco cess rules and notified rates. The contractor must report daily collections to the relevant regional office. Pakistan Tobacco Board may inspect collection records, and failure to comply with its directions may result in cancellation of the contract.

Payment and Contract Conditions

The successful bidder must execute an agreement with Pakistan Tobacco Board and provide the required security for performance of the contract. A bank guarantee is acceptable subject to the Board’s approval and contractual conditions.

The successful bidder must pay 25% of the bid amount, with the participation bank draft adjusted toward the payment. The remaining amount is payable in three equal instalments on 12 January 2027, 12 March 2027 and 12 May 2027. The required bank guarantee must cover the outstanding contractual liability and remain valid through 30 June 2027.

Failure to make the initial payment may lead to forfeiture of the deposited amount and an offer to the next eligible bidder. Failure to pay subsequent instalments may result in cancellation, recovery under the bank guarantee and other contractual action.

The contractor must collect cess at the prescribed rates. A reduction in tobacco production because of flooding or other natural circumstances will not entitle the contractor to a reduction in the contracted amount. Collection obligations also extend to liable tobacco from earlier crops and stocks purchased or sold during the relevant collection period.

Cess must be collected from liable purchasers, tobacco companies, dealers and other relevant businesses in accordance with the rules, rather than demanded directly from tobacco growers. The contractor must provide details of the agents appointed for collection, including their names, addresses and telephone numbers.

The Chairman, Pakistan Tobacco Board, reserves the authority to accept or reject bids and to discontinue the bidding process. Contractual default may lead to forfeiture of security, recovery of losses, blacklisting and legal proceedings, including registration of an FIR.

In addition to open bidding, prospective bidders may submit alternative proposals for tobacco cess collection, including their proposed collection arrangements and costs, for the Board’s consideration. Proposals must reach the Board before 11:00 a.m. on 2 November 2026.

Office: Director, Pakistan Tobacco Board, 46-B, Officers Colony, Jamrud Road, Peshawar.
Telephone: 091-9211732, 091-9217149.
Website: www.ptb.gov.pk.
Notice reference: PID(P) 227/26.