The decision of government to boost the Federal Excise Duty (FED) on cigarettes has yielded a notable increase in revenue besides reducing the consumption of cigarette.
The Federal Board of Revenue (FBR) Yearbook 2022-23 substantiated the noteworthy development, according to which the share of cigarettes in the overall Federal Excise Duty (FED) collection has escalated to 40 percent.
The share of the top ten sectors is about 94 percent and cigarette stood at top of the list followed by cement with 18.7 percent and concentrates 9.6 percent share, said the report. This upswing is chiefly attributed to the imposition of higher FED rates on cigarettes. The fiscal year 2022-23 saw three significant upward revisions, ending a three-year stagnation period.
As per FBR Yearbook, “One of the major sectors which contributed to FED revenues included cigarettes due to both inflation and increase in excise duty rates.”
