The recent budget presented by the coalition government of Pakistan has brought about significant changes in various sectors, including excise duties. These changes are expected to affect the economy, businesses, and the general public. In this article, we will focus on the changes made in the excise duties and their impact on different industries.
Custom Duty on E-Liquids, Locally Manufactured Cigarettes, and Filter Rods
The budget proposes an increase in the custom duty on e-liquids for electric cigarette kits, locally manufactured cigarettes, and filter rods for cigarettes. The new rates are as follows:
- E-liquids for electric cigarette kit: Rs. 10,000 per kg
- Locally manufactured cigarettes: On pack printed retail price higher than Rs. 5,960 per thousand cigarettes: Rs. 1,850 per thousand
- Filter rods for cigarettes: Rs. 1,500 per kg
The increase in custom duty on these items is expected to generate additional revenue for the government. However, it may also lead to a rise in the prices of these products, which could negatively impact the consumers and businesses involved in their manufacturing and sales.
Excise Duty on Service Sector
The budget proposes an increase in the excise duty on the service sector as well. The travel services and telecom services will be impacted by this change. Here are the details:
- Travel services: The excise duty on club, business, and first-class air tickets for international travel has been increased from Rs. 10,000 to Rs. 50,000. This increase is expected to generate more revenue for the government, but it may also lead to a rise in airfares for international travelers.
- Telecom services: The excise duty on telecom services in Islamabad Capital Territory has been increased from 16% to 19.5% to align the Federal Excise Duty rates with sales tax rates. This increase is expected to generate more revenue for the government, but it may also lead to a rise in telecom bills for consumers.
The changes made in the excise duties in Pakistan’s latest budget are significant and are expected to have an impact on various industries and consumers. While the increase in custom duty and excise duty is expected to generate more revenue for the government, it may also lead to a rise in prices of the affected products and services, which could be a concern for businesses and consumers alike. It is important to keep track of such changes and understand their implications to make informed decisions.