Pakistan: FBR Mulls Second Excise Rate Increase This Fiscal for Tobacco Products

Source from:  Daily Times  03/09/2014

To achieve the target set for federal excise duty (FED) from cigarette industry, the country's tax managers are mulling an interim increase in excise rate during the last quarter of current fiscal year, 2013-14. This will be a second increase in the excise duty on tobacco during this fiscal.

The Federal Board of Revenue (FBR) is engaged in consultation to weigh the implications of proposed changes in the duty structure on cigarettes in the last three months of 2013-14, sources said. If implemented this could lead the way for another proposal that can introduce raise in Excise duty rate twice in a year's as a standard practice.  

For the purpose, FBR, according to sources, has also been in touch with two leading cigarette manufacturers and discussing with them the possibility of increasing effective Excise Duty structures on the cigarettes.

An expert asking not to be named said, "The FBR tries hard to meet the annual tax collection target and for that it also mulls increase in excise duty collection from the tobacco industry. Nonetheless, it quite apprehensive as market dynamics does not support any drastic action." Enditem