Federal Excise Duty Likely To Be Increased Till 44 Rupees On Packet Of Cigarette

Category : Social

The group had made similar recommendations last year as well when the duty was enhanced from Rs 28.40 to Rs 32.98.

Islamabad (Web Desk) A technical working group on tobacco has urged the government to increase excise duty on cigarettes by 75 percent in the upcoming budget.

The group, which is part of an effort to raise the public health and has members from the World Bank, World Health Organisation, the Tobacco Cell at the Health Ministry, Bloomberg partners and the Federal Bureau of Revenue, has recommended that the Finance Ministry should increase the excise duty on cigarette packs that fall under the lower slab from the current level of Rs 33 to Rs 44.

Duties on cigarette packs are divided into two slabs or categories, which are determined by the price of the cigarettes.

Packs which cost Rs 88 or less fall under the 'lower slab', while those which cost more than Rs 88 fall under the 'higher slab'.

Officials say that 80 percent of all cigarette brands fall under the lower slab. Increasing tax on these brands would render them out of reach of lower income groups, especially youngsters (under-aged smokers).

The group had made similar recommendations last year as well when the duty was enhanced from Rs 28,40 to Rs 32,98.

The duty on higher slabs currently stands at Rs 74,10, which will be increased according to the inflation rate.

It has also been discovered that multinational tobacco companies had proposed to the FBR for introduction of a third slab, which is expected to give tax relief to cigarette packs in the middle bracket.