FBR approves significant tax increase on cigarettes ahead of mini-budget
The Federal Board of Revenue (FBR) has approved a significant tax increase on cigarettes ahead of the mini-budget which will be presented in Parliament today (Wednesday).
The move is in line with the terms of the IMF agreement and is expected to generate Rs170 billion in revenue.
The FBR has issued a notification about the increase in federal excise duty (FED) on local cigarettes.
According to the notification, the rate of duty will be Rs16,500 per thousand cigarettes on locally produced cigarettes if their on-pack printed retail price exceeds Rs9000 per thousand cigarettes.
Meanwhile, the rate of duty will be Rs5,050 per thousand on locally produced cigarettes if their on-pack printed retail price does not exceed Rs9,000 per thousand cigarettes.
Following are the new FED on sales of cigarettes with effect from February 14, 2023:
The tax increase on cigarettes comes ahead of the mini-budget presentation in Parliament, which is expected to be approved on Wednesday. The move is aimed at generating revenue and meeting the targets set by the IMF under the bailout agreement.
The mini-budget is expected to include a range of measures aimed at boosting the economy, reducing the budget deficit, and addressing the challenges faced by different sectors of the economy.
