Minister seeks review of tobacco taxation structure

Islamabad: Minister for National Health Services Aamer Mehmood Kiani has advised the Ministry of Finance to withdraw the third slab of Federal Excise Duty (FDE) on cigarettes as the measure has led to an increase in cigarette production. The measure was introduced in the budget 2017-18.

In a letter written to Minister for Finance, Revenue and Economic Affairs Asad Umer, Kiani has informed that after the introduction of third slab in 2017, local production of cigarettes has increased by 77% compared to production in the previous year. It may be recalled that Kiani had, only last week, announced to coordinate with Ministry of Finance to raise taxes on tobacco products.