The Federal Board of Revenue (FBR) has increased federal excise duty on cigarettes from May 29, 2017. In this regard, the FBR has issued an SRO here on Wednesday. Following is the text of the notification issued here on Tuesday.

SRO 407(1)/2017.-ln exercise of the powers conferred by sub-section (3) of section 3, read with sub-section (5) of section 12 and section 40 of the Federal Excise Act, 2005, the FBR 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 on the goods specified in column (2) of the said Table falling under the Pakistan Customs Tariff heading specified in column (3) thereof, namely: For the purpose of payment of Federal Excise Duty, the minimum retail price (excluding sales tax) of cigarettes shall not be less than 45 percent of the retail price specified under column (2) of serial number (1) of the Table above.

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S. No   Description                        PCT Heading             Rate of Duty

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(1)      (2)                                   (3)                          (4)

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1     Locally produced cigarettes if their    24.02       Rupees three thousand

      on-pack printed retail price exceeds              seven hundred and forty

      four thousand five hundred rupees                per thousand cigarettes.

      per thousand cigarettes.

2     Locally produced cigarettes if their    24.02         Rupees one thousand

      on-pack printed retail price exceeds              six hundred and seventy

      two thousand nine hundred and                    per thousand cigarettes.

      twenty-five rupees per thousand

      cigarettes but does not exceed four

      thousand five hundred rupees per

      thousand cigarettes.

3     Locally produced cigarettes if their    24.02        Rupees eight hundred

      on-pack printed retail price does not            per thousand cigarettes.

      exceed two thousand nine hundred

      and twenty-five rupees per thousand

      cigarettes.

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-Business Recorder