Pakistan: Smokers to Contribute Rs 80bn to National Kitty

Source from:  Daily Times  06/17/2013

Smokers of the country will likely contribute around Rs 80 billion to the national kitty during the upcoming fiscal year 2013-14 as the cigarettes and tobacco sales are to remain major revenue spinner under the head of federal excise duty (FED). FED on cigarettes and tobacco is targeted to generate Rs 79.931 billion in 2013-14.

Cigarettes manufactured in the country during first nine months of 2011-12 were recorded at 45.674 billion sticks and according to the first nine months of 2012-13 estimates some 49.247 billion sticks were produced in the country.

The increase in smoking especially in frustrated youth and incremental increase in FED each year on sales of cigarette help the government to generate additional resources from this injurious business.

According to the budget document, cigarettes and tobacco sales were supposed to generate Rs 56.692 billion in the outgoing fiscal year 2012-13 and according to the revised estimates, duty collection from cigarettes and tobacco sales is to go up to Rs 62.768 billion by June 30, 2013 and target for next fiscal has been fixed at Rs 79.931 billion.

Natural gas sales are supposed to generate Rs 14.455 billion in the outgoing fiscal year 2012-13 and according to the revised estimates, duty collection from natural gas sales is to go down to Rs 13.222 billion by June 30, 2013 and target for next fiscal year has been fixed at Rs 18.785 billion.

Cement sales were targeted to generate Rs 14.10 billion in the outgoing fiscal year 2012-13 and according to the revised estimates, duty collection from cement sales is to go down to Rs 11.776 billion by June 30, 2013 and target for next fiscal has been fixed at Rs 16.505 billion.

Beverages and concentrate sales were supposed to generate Rs 6.857 billion in the outgoing fiscal year 2012-13 and according to the revised estimates, duty collection from beverages and concentrate sales is to go up to Rs 8.786 billion by June 30, 2013 and target for next fiscal has been fixed at Rs 10.822 billion.

Imported goods were targeted to generate Rs 9.333 billion in the outgoing fiscal year 2012-13 and according to the revised estimates, duty collection from imported goods is to go down to Rs 8.457 billion by June 30, 2013 and target for next fiscal has been fixed at Rs 12.692 billion. Enditem