Karachi: According to the report, cigarette prices are to be increased in Pakistan by at least 70 percent compared to the current average rate of cigarette as a price of per packet of cigarette will increase Rs. 10 to 25. The Federal Government is allowing duty of 70% on the assessment of IMF on cigarette in coming fiscal budget for 2014-15.
Pakistan is a signatory to WHO`s Framework Convention on Tobacco Control (FCTC), which demands an increase in prices and taxes of tobacco to discourage consumption. In this regard, taxes on tobacco are being increased as the tobacco industry is a single biggest contributor of excise duty. The FBR officials said that the only 6.38 percent excise duty will be rise after change in the excise structure. But due to increase in tax, illegitimate production and tobacco business will possibly growth as it has already increased.
FBR is likely to save Rs. 87 billion through the tobacco industry in the form of excise duty during the fiscal year, said by industry sources. In order to protect government’s revenues, a particular structure has been implemented to give a growth to revenues of government.[junkie-alert style=”white”] It is to remember that Pakistan Tobacco Company (PTC) has paid Rs. 60 billion in form of tax during the last year.[/junkie-alert]