ISLAMABAD, Aug 23(ABC): The federal government Monday promulgated an ordinance to slap an additional Rs36 billion tax on cigarettes, Rs2 billion on tobacco processing, and reduced levies on transport vehicles — to fetch an additional Rs38 billion in taxes.
The prices of cigarettes of tier-1 brands may go up by Rs20 to Rs30 per packet, while for tier-2 brands the rates will go up by Rs10 per packet.
On tobacco processing, the government has jacked up advance federal excise duty (FED) tax from Rs10 per kg to Rs390 per kg, which will be adjustable.
The government envisages the collection of Rs2 billion through this measure.
Just ahead of the International Monetary Fund’s (IMF) executive board meeting scheduled to be held in Washington on August 29, Pakistan has moved ahead to slap taxes on cigarettes and tobacco processing to secure the revival of stalled programme and release of $1.17 billion tranche under augmented $7 billion extended fund facility (EFF).
