FBR decision to implement tax stamps on cigarette packs lauded
ISLAMABAD—President Pakistan Businessmen and Intellectuals Forum (PBIF) Mian Zahid Hussain on Monday lauded the decision of the Federal Board of Revenue (FBR) to implement tax stamps on cigarette packs to curtail tax evasion. “The decision will help the Apex tax body to raise at least Rs 30 billion in taxes while it will pave way for expansion in the units of legitimate taxpayers while attracting heavy foreign investment,” he said in a statement issued here today.
Mian Zahid Hussain said that despite a regulatory regime in place to reduce smoking in Pakistan, the government has not been able to achieve its desired results but the recent decision of FBR may discourage the trend. He said that illicit cigarette sector continue to increase its share in the market to over 23 percent hitting revenues and alarm legitimate players in the industry who are forced to carry increasing tax burden. Increasing regulatory and fiscal burden on the tax paid segment, more and more consumers are switching to the illicit substitutes offered by the largest tax evading sector in the country. He said that the illicit sector includes smuggled cigarettes, counterfeit products, and tax evaded cigarettes which cost around Rs 30 billion per annum.—APP