LAHORE: The All Pakistan Central Union Pan-Cigarette Beverage Retailers has sought Prime Minister Shehbaz Sharif intervention for the survival of the pan cigarette retailers after unprecedented increase in the Federal Excise Duty rate on cigarettes.
The retailers have requested Prime Minister Shehbaz Sharif to take notice of the matter and find a solution to the serious effects on retailers due to the high cost of legal cigarettes.
In a letter sent to Prime Minister, the All Pakistan Central Union Pan-Cigarette Beverage Retailers highlighted the negative impact of the extraordinary increase in the federal excise duty on legal cigarettes on pan-cigarette retailers.
The union president, Haji Muhammad Mubeen Yusuf Butt, informed the premier about the difficulties faced by retailers due to the increase in legal cigarette prices after the FED hike.
The letter stated that on February 15, taxes of Rs 60 billion were imposed on the cigarette industry through the mini-budget, and the tax rate on cigarettes was increased from 200 percent to 400 percent. The move doubled the price of cigarettes, but consumers did not accept the increase.
He said that after the increase in FED, the sale of big brands is decreasing, making it impossible to meet the tax collection targets from the cigarette industry.
The letter further stated that more than 0.7 million retailers selling pan-cigarettes across the country have faced a crisis due to the extraordinary increase in federal excise duty on cigarettes, which is likely to affect the livelihood of 0.5 million people.
Copyright Business Recorder, 2023
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