ISLAMABAD: The government has started the implementation of the mini-budget late Tuesday night by doubling the Federal Excise Duty on cigarettes from Feb 14, 2023.
The FBR has issued an SRO 178(I)/2023 on Tuesday night. It is learnt that FBR has started charging an increased rate of 18 percent sales tax at the import stage.
According to the notification, under the first slab of cigarettes, locally produced cigarettes if their on-pack printed retail price exceeds Rs 9000 per 1000 cigarettes, the rate of the federal excise duty would be Rs 16,500 per thousand cigarettes.
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Under the second slab, the locally produced cigarettes if their on-pack printed retail price does not exceed Rs 9,000 per thousand cigarettes, the rate of the FED would be Rs 5,050 per thousand cigarettes, the notification added.
Sources told Business Recorder on Tuesday that after approval of mini-budget of Rs 170 billion by the federal cabinet, the government is empowered to impose regulatory duties and additional customs duty (ACD) on the import of luxury/non-essential items through statutory regulatory orders (SROs) with immediate effect without waiting for the signing of the Tax Laws Amendment Bill 2023 by the President.
The Federal Board of Revenue (FBR) is legally empowered to issue notifications to change duty structure at the import stage after approval from the cabinet.
Usually, the sales tax and excise measures are applicable from the next day of the assent given by the president. The tariff rationalization can be done through notifications, they added.
Copyright Business Recorder, 2023
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