FBR Opposes Imposing Sin Tax On Cigarettes

FBR opposes imposing sin tax on cigarettes

FBR is of the view that imposing sin tax will hurt the revenue.

Lahore (UrduPoint / Pakistan Point News – 17th April, 2019) The Federal board of Revenue (FBR) has opposed the ‘sin tax’ proposed by the government.

Media reports said that the FBR has apprised about its opinion to the Health Ministry.

FBR is of the view that imposing sin tax will hurt the revenue.

The bureau stated that revenue is likely to decrease if sin tax is imposed on juices and cigarette, adding that the tax evaders will benefit from this sin tax.

FBR said that the prices of juices and cigarettes will further rise with the imposition of sin tax.

The Pakistan Tehreek-e-Insaf (PTI) government had earlier announced to impose sin tax on smokers.

According to details, the sin tax will be imposed on smokers who are the frequent buyers of cigarettes.

The amount collected from sin tax will be spent on health sector.

Moreover, the price of cigarettes is expected to rise in view of the government’s decision. The health ministry is considering various options regarding the sin tax.

It is planning to impose a Rs 5-15 tax on cigarettes.

Sources said that the sin tax can create an annual earning worth billions.

Pakistan will be the second country to impose sin tax on cigarettes, after Philippines that has a similar law.

A final decision in this regard is still awaited.

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