Pakistan lost Rs.209 billion in tobacco taxes

May 26, 2021

465

According to official figures, the Pakistani government has lost at least 209 billion rupees in tobacco taxes over the past five years due to unfair tax policies and poor revenue collection mechanisms for the local tobacco industry.

Data shows that tobacco tax collection in Pakistan fell sharply in 2017, when the then government imposed discriminatory tier based taxes on cigarettes.

A comparison of tax collection data for Pakistan and India showed that both countries collected 116 billion rupees and 601 billion rupees, respectively, in fiscal 2016 from tobacco taxes. Reduction in the introduction of taxes at the third level.

Tax collection in Pakistan was reduced from 116 billion rupees in 2016 to 85 billion rupees in 2017; It then recorded a modest growth of 90 billion rupees in 2018. The total tax collection reached 117 billion rupees in 2019; According to official figures released by the Federal Internal Revenue Service, in 2020 it will be Rs 116.