ISLAMABAD: The Ministry of Health has suggested increase in taxes on tobacco products in the upcoming budget (2016-17).
The recommendations have been formulated by the Technical Working Group, which comprises representatives of the Federal Board of Revenue (FBR), the World Health Organization (WHO), the World Bank, and the Tobacco Control Cell.
The experts have recommended that lower slab of all brands of cigarettes be taxed at the rate of Rs44 per pack of 20 cigarettes (from Rs14.20 to Rs 22 per 10 cigarettes), with annual adjustment to tobacco tax rates introduced to minimize the impact of inflation of per capita income growth.
The recommendations also include removal of exemptions of tobacco taxes provided at Serial No. 4 of the Schedule 3 of Federal Excise Act (i.e., Navy, President of Pakistan President of AJK and the Governors of the Provinces, members of their families and guests).
The Working Group has also called for earmarking 2 per cent of tobacco tax revenue for the Prime Minister’s National Health Programme for the treatment of non-communicable diseases.
