ISLAMABAD: The government has decided to impose health tax on cigarettes and cold drinks. It will be a part of the budget for next year, 2019-2020.
Tax worth Rs10 will be imposed on a pack of cigarettes worth Rs20. tax will be imposed on carbonated drinks too. The government will charge Rs1 on 250ml bottles. The government hopes to earn Rs50 billion tax. The tax is being implemented to discourage people from smoking.
Previously, the government had divided tobacco taxes into three tiers. The third tier was taxed the least and resulted in the production of more cigarettes.
The government has now imposed heavier taxes on cigarettes and the revenue collected from this will be used to provide healthcare services.
