How much FED is imposed on local cigarettes?

Federal Excise Duty imposed on cigarettes to fetch Rs115bn for the government

February 15, 2023

The picture shows a representational image of cigarettes. — Geo.tv illustration

The federal government decided on Wednesday to increase the Federal Excise Duty (FED) on cigarettes in a bid to fetch an additional Rs115 billion taxes out of Rs170 billion agreed to by the government in line with the International Monetary Fund (IMF) conditions.

Following the cabinet’s nod in the shape of Tax Laws Amendment Bill 2023, the FBR issued the Statutory Regulatory Order (SRO) for hiking the FED on cigarettes.

How much FED is imposed on local cigarettes?

The duty on locally produced cigarettes if their on-pack printed retail price exceeds Rs9,000 per 1,000 cigarettes will be Rs16,500, said the SRO.

Meanwhile, the duty on locally produced cigarettes if their on-pack printed retail price does not exceed Rs9,000 per 1,000 cigarettes will be Rs5,050.

The government will also table its money bill in order to fulfil key demands put forward by the Washington-based lender today.