ISLAMABAD: With the aim to generate Rs 15 billion, Federal Board of Revenue (FBR) has decided to increase federal excise duty (FED) on cigarettes in the next budget for fiscal year 2016-17.
Against the Ministry of Health’s proposed FED for lower tier at Rs 2200 per thousand cigarettes, the FBR has decided to enhance the rate of the FED for lower tier to Rs 1,630 per thousand cigarettes and Rs 3,620 per thousand cigarettes for upper tier.
The FED is applicable on cigarettes at Rs 1,420 and Rs 3,155 per 1000 sticks for lower and upper tiers respectively. Under the proposed slabs of the FED on cigarettes, the FED on lower tier has been proposed to be increased from Rs 1,420 per 1000 sticks to Rs 1,630 per thousand cigarettes.
