LAHORE: The federal government will increase taxes on tobacco products in December.
The government has announced a biannual tax increase. The first tax increase, applied in June 2016, was Rs 1,534 per 1000 sticks, whereas, the second tax increase will be in December, which will be Rs 1,649 per 1,000 sticks.
“The smaller tax increase by the government is a good measure to curb thriving business of illicit cigarettes in the country. However, a holistic approach required to reduce its fast growing trend such as; enforcements of already existing tobacco laws and regulations when applied resultant in controlling the rapidly growing illicit cigarette market”, said a tax expert, adding that the bi-annual tax increases will bring more stability and predictability to the market.
