During a news conference, Rs 36 billion tax has been imposed on cigarette and tobacco by the Federal Government, according to Miftah Ismail, Minister of Finance and Revenue.
As per the Minister, the charges are levied in order to fill the gap left by the drop in retail tax from 42 billion to 27 billion rupees.
The Ministry of Finance at first asked for a tax on cigarette of 18 billion. However, the Federal Government picked to double the taxes and imposed worth Rs. 36 billion.
A total tax of Rs. 2,050 charge instead of Rs. 1,850 against Tier-2 cigarettes (Capstan, etc) a pile of 50 packs (1000 cigarettes). Whereas, tier-1 cigarette (GoldLeaf, etc.) pile of 50 packs now levied the total tax of Rs. 6,500 instead of Rs. 5,900.
However, the tax on tobacco has been increased by 3,800% from Rs. 10 per kg to Rs. 380 per kg.
As per Miftah, the tax on cigarette came under excise duty, whereas the tax on tobacco is a cess (tax).
