ISLAMABAD: The Federal Board of Revenue has enhanced federal excise duty on cigarettes.
The FBR issued SRO 407(I)/2017 to enhance the duty which shall be levied and collected on fixed basis.
The FBR imposed FED at Rs3,740 per thousand cigarettes on the locally produced cigarettes if their on-pack printed retail price exceeds Rs4500 per thousand cigarettes.
In the second tier, the FBR imposed Rs1,670 per thousand cigarettes on locally produced cigarettes if their on-pack printed retail price exceeds Rs2,925 per thousand cigarettes but does not exceed Rs4,500 per thousand cigarettes.
In third tier, the FBR imposed Rs800 per thousand cigarettes on locally produced cigarettes if their on-pack printed retail price does not exceed Rs2,925 per thousand cigarettes.
The FBR, exercising the powers conferred upon it by sub-section (3) of section 3, read with sub-section (5) of section 12 and section 40 of the Federal Excise Act, 2005, directed that the excise duty will be levied and collected on fixed basis at the rates specified in column (4) of the Table on the goods specified i column (2) of the said Table falling under the Pakistan Customs Tariff heading specified in column (3) thereof, namely:
For the purpose of payment of Federal Excise Duty, the minimum retail price (excluding slaes tax) of cigarettes, will not be less than 45% of the retail price specified under column (2) of serial number (1) of the Table above.
