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Govt approves health tax on cigarettes and beverages
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Govt approves health tax on cigarettes and beverages

ISLAMABAD: The federal government has approved imposition of health tax on cigarettes and beverages in the budget to collect additional tax revenue of Rs 35 billion for fiscal year 2019-20.

The federal cabinet has approved a tax of Rs10 on a pack of 20 cigarettes, while Rs1 tax will be received on a 250 ml bottle of beverages.

Moreover the rate of excise duty on cigarettes is also being increased. The health tax will earn Rs30 billion and tax on beverages will provide another eight billion rupees per annum to the government exchequer, officials said.

According to sources, the cabinet after discussing the health hazards posed by smoking, decided to impose the tax on cigarettes and the amount will be spent in the health sector. Sources said that the prime minister’s support for this tax expressed his resolve to improve health sector despite the economic crisis.