According to some reports, the rising Federal Excise Duty (FED) and General Sales Tax (GST) on tobacco goods will likely cause the price of Gold Leaf cigarettes in Pakistan to reach Rs. 800 by the first of March 2023.
A startling 250% increase in price would result from the government’s recent implementation of a rate of 153% Federal Excise Duty (FED) and 25% General Sales Tax (GST) on the sale of cigarettes in Pakistan.
According to the Federal Board of Revenue (FBR), the FED has climbed from Rs. 6.5 to Rs. 16.5, or a 153% increase, for premium cigarette brands, while it has grown by 98% from Rs. 2.55 to Rs. 5.05 FED per cigarette for less expensive brands.
Gold Leaf Cigarette Price in Pakistan
Currently, a pack of Gold Leaf cigarettes costs Rs. 520 in Pakistan; however, the imposition of additional taxes and charges on the tobacco sector is likely to cause that price to increase even more by the first of March 2023.
By the end of the following month, the cost of a pack of Gold Leaf cigarettes in Pakistan will reportedly reach Rs. 800. But, other brands of cigarettes will experience similar price increases and will not be the only ones to be impacted by the higher taxes.
Impact of Increased Taxes
Moreover, Philip Morris Pakistan Ltd., an international tobacco company in Pakistan, has cautioned the government of a detrimental effect from the increased FED on cigarettes in the nation as it will promote the black market for cigarettes.
The corporation claims that the increased Rate will hurt the economy since it will decrease government revenue. “The hike in taxes for tax-paying tobacco companies will effectively favor the already vast illicit cigarette market in Pakistan.” the spokesperson said. “This will lead to a shortfall in Government revenue as business will shift from tax-paid sector to non-tax-paid sector.” he added.
