The Federal Board of Revenue (FBR) has proposed a Rs10 health levy on each packet of cigarettes. The proposal has the potential to encourage current smokers to quit, FBR believes.
Before devising policy formulation, FBR has sent its proposal to the Law Ministry seeking legal advice if the suggestion falls into the jurisdiction of the federal government or not in the aftermath of the 18th Amendment.
FBR officials say they are awaiting the response of the ministry and after receiving the advice, they would move forward accordingly.
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Last year, an approval was granted for the same tax by the cabinet. The anti-tobacco lobby has been advocating imposition of the levy as the price increase would discourage consumption, especially among children and youth.
Tobacco companies, on the other hand, say this could cause a revenue loss worth Rs20 to Rs24 billion to the national exchequer per year.
