ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday announced massive increase in federal excise duty on sales of cigarettes.
The FBR issued SRO 178(I)/2023 to notify the new rates of federal excise duty (FED) on sales of cigarettes.
Following are the new FED on sales of cigarettes with effect from February 14, 2023:
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01. The rate of duty shall be Rs16,500 per thousand cigarettes on locally produced cigarettes if their on-pack printed retail price exceeds nine thousand rupees per thousand cigarettes.
02. Rate of duty shall be Rs5,050 per thousand cigarettes on locally produced cigarettes if their on-pack printed retail price does not exceed nine thousand rupees per thousand cigarettes.
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Following are the previous rates:
01. Locally produced cigarettes if their on-pack printed retail price exceeds six thousand six hundred and sixty rupees per thousand cigarettes the duty was Rupees six thousand five hundred per thousand cigarettes.
02. Locally produced cigarettes if their on-pack printed retail price does not exceed six thousand six hundred and sixty per thousand cigarettes the duty was Rupees two thousand and fifty per thousand cigarettes.
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The rates of duty on cigarettes have been increased following the government agreed with the conditions of the International Monetary Fund (IMF) for revenue generation and release of next tranche under Extended Fund Facility (EFF).
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The government is also planning to introduce a supplementary finance bill or commonly known as mini budget before the parliament on February 15, 2023. It was planned that the government would bring the new taxation measures through an ordinance but the President of Pakistan had advised the government to take parliamentary approval.
