The government implemented tax measures worth Rs. 440 crore23 in the 2022 budget to meet the revenue collection target of Rs. 7,004 crore.
Following the publication of the Finance Law, Federal Board of Revenue (FBR) Chairman Asim Ahmed said new taxes of Rs 355 billion would be levied.
At the same time, excise duty has also been increased on domestic cigarettes.
He said that taxes on local cigarettes could increase from 20 to 0.40 paisa per cigarette. Smokers are facing a severe cigarette shortage affecting markets across the country.
The shortage comes after the federal government announced it would impose billions of taxes on the tobacco industry.
The Federal Excise Tax (FED) on locally manufactured cigarettes with a retail price of more than Rs 5,960 per 1,000 cigarettes was increased by 7.14%. The tax has been increased from Rs 5,200 to Rs 5,600, an increase of Rs 0.4 per cigarette.
Likewise, for locally produced cigarettes with a retail price of less than Rs 5,960 per 1,000 cigarettes, the FED was increased by 10.81% from Rs 1,650 to Rs 1,850. This equates to a tax of Rs 0.2 per cigarette.
