Federal Board of Revenue (FBR) has notified up to 46% increase in Federal Excise Duty (FED) on locally produced cigarettes as announced by Finance Minister Asad Umar while presenting amendment to Finance Act, 2018 on Tuesday.
The increase in taxation on cigarettes will be:
- for tier-1, the Federal Excise Duty (FED) has been increased from Rs 3,970 to Rs 4,500. The impact on price per 20-pack of cigarettes will be Rs 12.5,
- for tier-ii, the price for a packet was increased by just 7 paisas,
- for tier-iii, the impact on price per 20-pack of cigarettes will be Rs 11.
Following is the text of the SRO 1150(1)/2018 issued here on Tuesday:
The SRO stated that “ In exercise of the powers conferred by clause (b) of sub-section (3) of section 3 of the Federal Excise Act, 2005, the Federal Board of Revenue is pleased to direct that the excise duty shall be levied and collected on fixed basis at the rates specified in column (4) of the Table below on the goods specified in column (2) of the said Table falling under Pakistan Customs Tariff heading specified in column (3) thereof, namely:-
Posting of Inland Revenue officers at Tobacco Processing Factories
FBR has also made it mandatory for tax offices having jurisdiction to depute an officer of Inland Revenue at the premises of Green Leaf Threshing (GLT) unit for monitoring the processing and sale of un-manufactured tobacco sale.
The FBR on Tuesday issued SRO 1149(I)/2018 to amend Federal Excise Rules, 2015 and made it mandatory to monitor GLT units.
It said that the commissioner having jurisdiction shall post officers of Inland Revenue at the premises of GLT units, whether working separately or as part of a cigarette manufacturing units, for monitoring the receipts, processing, wastage, storage, issue of un-manufactured tobacco for sale, transfer or self consumption. They shall also stamp and sign the tax invoice issued by the GLT units.
It would be the responsibility of GLT units to provide the officers for postings, with in-house accommodation and office space that can enable them to perform their duties in an efficient manner.
A GLT unit shall not sell un-manufactured tobacco to any person who is not on active taxpayers list.