Govt urged to increase FED on tobacco products

Tobacco control activists demand that the government shall increase FED on tobacco products, including smokeless tobacco products, in Pakistan. Currently, there are two tax slabs for cigarettes. An amount of Rs33 FED is imposed on cigarettes costing less than Rs90 per packet and Rs90 on cigarettes with a price of Rs90 and above. However, these taxes are still below the standard set by World Health Organisation’s (WHO) Framework Convention on Tobacco Control (FCTC) to which Pakistan is a signatory since 2005. FCTC requires signatories to optimally impose a 75% tax on the retail price of cigarette packs. Pakistan has yet to achieve this standard. They demanded at least 30% increase in the Federal Excise Duty (FED) for each slab of cigarettes to enhance revenue collection and lower the consumption of tobacco, especially among youth.

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February-09-2021