ISLAMABAD: In a late-night move, the federal government on Tuesday enhanced taxes on cigarettes with immediate effect to collect Rs115 billion out of the planned Rs170 billion mini-budget, ARY News reported.
According to the notification issued by FBR, the standard rate of General Sales Tax (GST) has been jacked up from 17 to 18 percent with effect from February 15, 2023. The Federal Excise Duty (FED) on cigarettes has also gone up.
The government has increased FED on expensive brands from Rs6.5 per cigarette to Rs16.5 – an increase of 153%. For less expensive brands, per stick increase is from Rs2.55 to Rs5.05 – an increase of 98%.
READ: ECC APPROVES HIKING GAS PRICE BY 112% FOR DOMESTIC CONSUMERS
The Federal Board of Revenue (FBR) issued the notification after the cabinet approved the finance bill which would now be presented in parliament on Wednesday (today) for approval.
After President Dr Arif Alvi’s objections, the federal government has decided to pass the Finance Bill from the parliament which is also being termed ‘mini-budget’.
Sources told ARY News that the Finance Bill will be presented before the National Assembly (NA) and the Senate during separate sessions on Wednesday (today).
The Houses will forward the Finance Bill related to the budgetary recommendations to the standing committees on finance.
READ: PAKISTAN-IMF TALKS: GOVT ACCELERATES IMPLEMENTING ‘TOUGH CONDITIONS’
Sources said that the standing committees of the Upper and Lower Houses are expected to approve the Finance Bill by Thursday. On the same day, the NA and the Senate will pass the mini-budget legislation and later the bill will be forwarded to the president.
Prior to this development, sources said that Finance Minister Ishaq Dar will hold a press conference to announce the federal cabinet’s decision regarding the mini-budget legislation
Leave a Comment