ISLAMABAD
\nThe government\u2019s decision to raise the Federal Excise Duty (FED) on cigarettes has yielded a notable increase in revenue while simultaneously contributing to a reduction in cigarette consumption.
\nThe 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.
\nThe report said that 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.
\nThis 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.
\n\u201cOne of the major sectors which contributed to FED revenues included cigarettes due to both inflation and increase in excise duty rates,\u201d the FBR Yearbook said. As cigarette consumption diminishes, the consequential reduction in health-related issues could result in a positive impact on healthcare expenditures, contributing to a healthier and more sustainable society.
\nThe decrease in tobacco usage also aligns with the broader public health objective.
\nA study by the Pakistan Institute of Development Economics (PIDE) brings attention to the significant economic impact of the use of tobacco, according to which costs linked to diseases and deaths resulting from smoking in 2019 reached a staggering Rs 615.07 billion ($3.85 billion), equivalent to 1.6 percent of the GDP.
\nCommenting on the development, Malik Imran Ahmed, Country Director, Campaign for Tobacco Free Kids (CTFK) said that the tobacco industry had expressed discontent over the increase of FED claiming it would result in the shutdown. <\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD The government\u2019s decision to raise the Federal Excise Duty (FED) on cigarettes has yielded a notable increase in revenue while simultaneously contributing to a reduction in cigarette consumption. 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) […]<\/p>\n","protected":false},"author":2,"featured_media":401358,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-401348","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n