As the Federal Government tries to squeeze as much revenue as possible from the tobacco industry by implementing increased taxes, the price of Gold Leaf cigarette is expected to hit Rs. 800 in Pakistan by next month.
According to some reports, the price of Gold Leaf cigarette in Pakistan will likely reach Rs. 800 by 1st March 2023 due to the increased Federal Excise Duty (FED) and General Sales Tax (GST) on tobacco products.
Recently, the Government has implemented a rate of 153% Federal Excise Duty (FED) and 25% General Sales Tax (GST) on the sale of cigarettes in Pakistan, which is going to result in a staggering 250% increase in the prices of these products.
According to the Federal Board of Revenue (FBR), the FED has been increased from Rs. 6.5 per cigarette to Rs. 16.5, which is an increase of 153%, for expensive cigarette brands, while less expensive brands have seen a hike of 98% from Rs. 2.55 to Rs. 5.05 FED per cigarette.
Gold Leaf Cigarette Price in Pakistan
The price of Gold Leaf cigarette in Pakistan is Rs. 520 per pack at the moment and it is expected to rise even further by 1st March 2023 due to implementation of more taxes and duties on the tobacco industry.
According to several sources, the price of Gold Leaf cigarette in Pakistan will reach Rs. 800 per pack by next month. However, this won’t be the only cigarette that is affected by the increased taxes and other brands will show similar increments in their price.
Impact of Increased Taxes
Furthermore, an international tobacco firm in Pakistan, Philip Morris Pakistan Ltd. has warned the Government of a negative impact from the increased FED on cigarettes in the country as it will favor the illicit cigarette market.
According to the company, the increased FED will have a negative impact on the economy as it will reduce Government’s 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.
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