The federal government on Tuesday enhanced taxes on cigarettes with immediate effect to collect Rs115 billion out of the planned Rs170 billion mini-budget.
The standard General Sales Tax (GST) rate will rise from 17 to 18 percent starting on February 15, 2023, per the FBR announcement. Additionally increased is the Federal Excise Duty (FED) on cigarettes.
FED on expensive brands has raised by 153% from Rs6.5 per cigarette to Rs16.5 by government decree. For less expensive brands, the increase in price per stick is 98% higher, from Rs2.55 to Rs5.05.
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After the cabinet accepted the financial bill, which will now be presented to parliament on Wednesday (today) for approval, the Federal Board of Revenue (FBR) released the announcement.
The federal cabinet has decided to pass the Finance Bill, often known as the “mini-budget,” over President Dr. Arif Alvi’s objections.
According to sources, the Finance Bill will be submitted to the National Assembly (NA) and the Senate on Wednesday during separate sessions (today).
The Houses will forward the Finance Bill related to the budgetary recommendations to the standing committees on finance.
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According to sources, the Finance Bill must be approved by the Upper and Lower Houses’ standing committees by Thursday. The mini-budget legislation will be approved by both the NA and the Senate on the same day, after which the president will be informed.
It was previously reported that the federal cabinet’s decision on the mini-budget legislation will be announced at a news conference by Finance Minister Ishaq Dar.
