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Increased cigarette tax “proposed” in the budget for 2025

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The National Institute of Health (NIH) has begun accepting recommendations from stakeholders regarding the proposed rise in cigarette prices, as per the available information.

According to sources, NGOs have proposed increasing the Federal Excise Duty (FED) on tobacco by 26.6%.

Sources indicate that the Tobacco Control Cell has concluded its suggestions for increasing the cost of cigarettes in the 2025 budget.

Sources indicate that the Ministry of Health will conclude these proposals and transmit them to the Ministry of Finance this week.

Sources familiar with the topic have indicated that there is a potential for a 15% to 19% rise in the Federal Excise Duty (FED) on tobacco in the 2025 budget.

Additional tax on tobacco goods suggested

Presently, the Pakistani government is imposing a Federal Excise Duty (FED) of Rs120 on each pack of cigarettes, whilst cigarettes produced by the local industry are being sold at a price of 90 rupees per pack.

Last year, multinational cigarette makers contributed Rs173 billion in taxes, while local cigarette manufacturers avoided paying Rs240 billion in taxes.

Pakistan is confronted with a substantial issue of extensive tobacco consumption, as more than 31.9 million individuals aged 15 years and over are currently using tobacco, accounting for around 19.7% of the adult population.

Each year, smoking-related illnesses cause the death of more than 160,000 people, which accounts for a significant 1.6% of the country’s Gross Domestic Product (GDP). Nevertheless, for the fiscal year 2022-23, the revenue generated from cigarette taxes accounted for only 16% of these expenses, indicating a decrease from 19.5% in 2019.

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Islamic Sukuk Bonds: Government Is Expected To Begin Bond Auction Next Week

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There is now more positive economic news for the people of Pakistan. The government is anticipated to begin the Sukuk Islamic Bond auction next week, after the central bank’s announcement of a large drop in the policy rate.

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SIFC Encourages Green Tourism: Reforming Visas to Increase Investment

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Enhancing investment in the tourism sector, Green Tourism Pakistan’s initiative has received backing from the Special Investment Facilitation Council.

Visa-On-Arrival for 126 countries, Visa-Free Entry for Gulf Cooperation Council nations, and 24-hour expedited visa processing are some of the main features of the Green Tourism Visa Policy.

It is anticipated that these endeavors will draw in about 80 million dollars in foreign direct investment and 8.3 billion rupees in domestic investment.

Green Tourism Private Limited has introduced hunting resorts in Naltar, Hunza, and Skardu, along with four- and five-star city hotels, to improve the tourism experience.

In the first phase of the project, 17 of the 78 areas have seen the start of development activity.

Approved is a central authority for Green Tourism that will supervise the growth of Air Operations.

To promote Religious Tourism, extra precautions have been taken to guarantee the security of visitors from all religions, including Sikhs and Buddhists.

Furthermore, in order to improve the quality of the tourist experience, the green guide quality program has been introduced to supply top-notch tour guides.

There is now a deluxe bus excursion from Islamabad to Peshawar that promotes local culture.

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July 2024 export data from Pakistan shows a significant rise.

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The Strategic Investment Facilitation Council (SIFC) has been instrumental in improving Pakistani products’ access to international markets, as seen by the significant surge in exports from the country at the start of the 2024–25 fiscal year.

With a 7.26% rise over the same month the previous year, July 2024 exports to the US were $476.017 million. After increasing by 7.74% annually, the United Arab Emirates emerged as the second-largest export destination.

The third and fourth places were occupied by exports to the UK ($183.303 million) and China ($60.100 million). A substantial increase in exports to Afghanistan was recorded in July of this year, rising from $46.262 million to $88.065 million, largely due to successful anti-smuggling efforts.

With a combined export volume of $553.951 million, more important export destinations included Germany, the Netherlands, Italy, Spain, Saudi Arabia, and Turkey.

A bright future for the national economy is suggested by the growing confidence major international markets have in Pakistani exports. Through the efforts of SIFC and the government, this greater access to global markets has been made possible.

Pakistan’s economy is predicted to remain stable as a result of the export growth that SIFC has enabled.

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