Govt decides to increase FED on cigarettes in budget


The government has decided to scale up federal excise duty (FED) on cigarettes, sugar, beverages and cooking oil in the budget for the financial year 2015-16.

The government has accepted proposal from Central Board of Revenue (CBR) for raising FED from 19 to 33 per cent on cigarettes, 9 to 12 per cent on beverages and 8 to 17 per cent on sugar.

The increase in FED is likely to accrue billion of rupees revenue for the government. Approval in this regard will be accorded in June 5 cabinet meeting.