ISLAMABAD: The Federal Board of Revenue (FBR) has collected Rs 237 billion as federal excise duty (FED) from cigarettes during 2023-24 as compared to Rs 142 billion in 2022-23, reflecting an increase of Rs 95 billion or 70 percent.
According to the FBR’s data, sales tax collection from cigarettes on local sales stood at Rs 60.664 billion in 2023-24 as compared to Rs 36.926 billion, reflecting an increase of 54.3 percent.
The net collection from the FED surged by 56.1%, rising from Rs 369.9 billion in the previous fiscal year to Rs 577.4 billion in 2023-2024.
Cigarettes remain top revenue spinner of FED
Consequently, the FED’s contribution to FBR’s overall tax collections increased from 5.2% to 6.2%. Significant contributors to FED revenues include sectors such as cigarettes, cement, concentrates for beverages/foods, and air travel. All major sectors, with the exceptions of concentrates and motor cars, experienced positive growth in the current fiscal year, FBR’s report added.
Copyright Business Recorder, 2024
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