Cigarettes to cost more

ISLAMABAD: The government has increased the tax rate on cigarettes in order to fulfil the commitments with the World Health Organisation (WHO).

According to the Finance Bill 2014-15 tabled by Finance Minister Ishaq Dar on Tuesday, the comparison showed that on locally produced cigarettes if the retail priceexceeds Rs2,286 per thousand cigarettes, the current FED rate was Rs2,325 per thousand cigarettes.

Now the FBR has proposed in the Finance Bill 2014-15 that on locally produced cigarettes, if the retail price exceeds Rs2,706 per thousand cigarettes, the proposed FED rate will be Rs2,632 per thousand cigarettes.

Under the existing arrangement, on locally produced cigarettes if the retail price does not exceed Rs2,286 per thousand cigarettes, the existing FED rate stands at Rs2,325 per thousand cigarettes. Now in the Finance Bill 2014-15, on locally produced cigarettes if the retail price does not exceed Rs2,706 per thousand cigarettes, the proposed FED rate will stand at Rs1,085 per thousand cigarettes.