RECORDER REPORT

ISLAMABAD: The Federal Board of Revenue (FBR) has further raised Federal Excise Duty (FED) on all three tiers of cigarettes through Finance Act, 2018.

The FBR has also announced that the President has given assent to the Finance Act, 2018 on May 22, 2018 and therefore, revised rates of federal excise duty on cigarettes and cement have come into force with effect from May 23, 2018.

According to the FBR’s instructions to the field formations, rates of federal excise duty on different categories/tiers of locally produced cigarettes under S Nos 9, 10 and 10a of Table-l of First Schedule to the Federal Excise Act, 2005 were revised upwards. Through clause 9(11)(A) of the Finance Act, 2018 and the rates of FED on locally produced cigarettes have been further enhanced. Rates of FED on locally produced cigarettes notified through SRO 562(1)/2018, dated 30.04.2018 and prescribed through Finance Act, 2018 are as under:

Locally produced cigarettes if their on-pack printed retail price exceeds four thousand five hundred rupees per thousand cigarettes, the rate of FED through SRO 561(1)/2018, dated 30.04.2018, is Rs3964/1000 cigarettes. Now, the rate of FED through Finance Act, 2018 would be Rs3870/1000 cigarettes.

Locally produced cigarettes if their on-pack printed retail price exceeds two thousand nine hundred and twenty-five rupees per thousand cigarettes but does not exceed four thousand five hundred rupees per thousand cigarettes, the rate of FED through SRO 561(1)/2018, dated 30.04.2018 is Rs1770/1000 cigarettes. Now, the rate of FED through Finance Act, 2018: Rs1776/1000 cigarettes.

Locally produced cigarettes if their on-pack printed retail price does not exceed two thousand nine hundred and twenty-five rupees per thousand cigarettes, the rate of FED through SRO 561(1)/2018, dated 30.04.2018 is Rs848/1000 cigarettes. Now, the rate of FED through Finance Act, 2018 would be Rs854/1000 cigarettes.

It may be further noted that rate of federal excise duty on cement under Nos. 13 of Table-I of First Schedule to the Federal Excise Act, 2005 have been enhanced from Rs1.25 per kilogram to Rs1.50 per kilogram also through clause 9(11)(A) of the Finance Act, 2018. Under the provisions of sub-clause (3) of clause 1 of the Finance Act, 2018, clause 9(11)(A) shall have effect on the next day of assent given to the Finance Act, 2018 by the President, Islamic Republic of Pakistan.

The President has given assent to the Finance Act, 2018 on 22nd May, 2018 and therefore, revised rates of federal excise duty on cigarettes and cement under clause 9(l1)(A) have come into force with effect from 23rd May, 2018.

The FBR has further directed the field formations to ensure payment of federal excise duty on locally produced cigarettes and cement at the revised rates, the FBR added.