Pakistan announces additional tax of 165 mln USD on cigarettes
Aug 24, 2022
Islamabad [Pakistan], August 24: Pakistan on Monday announced an additional tax of 36 billion Pakistani rupees (around 165 million U.S. dollars) on cigarettes and 2 billion rupees (around 9 million dollars) on tobacco processing, in order to collect an additional 38 billion rupees in taxes.
With the imposition of the additional tax via government ordinance, the price of cigarettes for tier-1 brands may go up by 20 to 30 rupees per pack, while 10 rupees per pack would be increased on tier-2 brands.
The government has increased the advanced federal excise duty tax on tobacco processing from 10 rupees per kilogram to 390 rupees per kilogram.
According to media reports, the latest taxes have been applied to secure the release of a 1.17-billion-dollar tranche under an augmented 7-billion-dollar extended fund facility with the International Monetary Fund (IMF).
The IMF's board meeting is scheduled to be held in Washington next week. (1 U.S. dollar = 217.66 rupees)
Source: Xinhua
