The Governor of Pakistan has imposed taxation measures of Rs 440 billion in the recent 2022-23 budget to meet the revenue collection target of Rs 7.004 billion.
Asim Ahmed stated that tax imposition of Rs 355 billion has been included in the new budget release, as the excise duty has been imposed on local manufactured cigarettes as well.
An increase of 20–40 paisa could be increased per cigarette accordingly.
A huge shortage of cigarettes is already being faced by smokers across the state, and this shortage is the result of the federal government’s imposition of taxes worth billions on the tobacco industry.
The FED on domestically produced cigarettes costing more than Rs 5,960 per 1,000 cigarettes has been raised by 7.14 percent. This means the tax is raised from Rs 5,200 to Rs 5,600, causing an increase of Rs 0.4 per cigarette.
In essence, with this increase, the FED on cigarettes worth less than 5,960 per 1,000 pieces has been increased by 10.81 percent, which is Rs. 200 more than the previous tax of Rs. 1,650.
This equals an increase of Rs 0.2 per cigarette.