Have you heard the news about price increase of cigarettes?
Are you ready to buy a packet of cigarette of Rs. 300+ or more, which was around Rs. 130 ONLY?
It just a day that the prices go up, and there’s a tension started among smokers, they are worried to continue to age-old practice of smoking due to this sudden increment and are unable to maintain the pace.
Even posts like these have started making rounds on the social media platforms;
To settle your tobacco and nicotine cravings, there’s an alternative, which is not only affordable but also rich in taste and very convenient…I am talking about vapes.
Yes, the best alternative to smoking is vapes; however, many young smokers are already vaping; it’s your time… to give it a thought!
Pakistan Announces Increase in Excise Duty on Cigs
This week, finance minister has presented a supplementary bill in the parliament, claiming to impose extra duties and taxes on some luxury goods of about Rs.170 billion.
However, from this bill, tobacco industry is effected the most. All of the popular cig brands like Dunhill, Marlboro, Gold Leaf, Benson, Capstan, Morven Gold, etc., prices have been increased manifold.
Federal Board of Revenue has notified that there will be an increase of around 153% in the FED tax for expensive cigarettes brands. However, the increase in FED tax for cheaper brands will increase by 98%.
Philip Morris Pakistan Limited, has claimed that due to increase in FED of more than 150%, there will be an increase in the price of cigarettes by 250%. According to the company, the increase of FED during the time of 2019-21, was 26%.
However, in the current fiscal year 2022-23, there was an increase of 25% FED on cigarettes in an earlier development.
According to some of the experts of the industry, it is speculated that due to the massive increase in the price of cigarettes, there will be an increase in sales of unlawful cigarette sector and this will continue to in Pakistan for long.
Due to the sudden price increase of cigarettes, a lot of consumers of big cig companies are shifting to illicit sector brands. As a result, there will be a great decline in the sales of legitimate cigarette brands.
However, there will be a loss of Rs.70 billion/year according to the experts of tobacco brands. There are chances that some of the popular brands of cigarettes might shut down their operations in the country and this will result in the shortfall of cigarettes and more increase in the prices and also the sales of illicit selling will be increased.