The Pakistani government has announced an increase in the adjustable Federal Excise Duty (FED) on unprocessed tobacco in order to boost tax revenue from the tobacco industry. The duty will be raised from 10 Pakistani rupees (approximately 0.3 yuan) per kilogram to 390 Pakistani rupees (approximately 12.3 yuan) per kilogram during the green leaf threshing stage.
Cigarette manufacturers will be responsible for paying adjustable consumption taxes. This measure aims to strengthen the trading records of the tobacco industry while reducing illegal trade.
The adjustable consumption tax is being raised to increase the cost for illegal cigarette manufacturers who deceive the tax system. The consumption tax can be adjusted when manufacturers submit their declaration forms.
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