FBR records 70 per cent increase in cigarette excise duty collection

ISLAMABAD: The Federal Board of Revenue (FBR) has recorded a significant rise in federal excise duty (FED) from cigarettes. The tax authority reported a collection of Rs237 billion in 2023–24.

This shows an increase of Rs95 billion when compared to the Rs142 billion collected last year. This figure reflects a 70 per cent growth in percentage terms.

Sales tax from local cigarette sales also grew. FBR data shows Rs60.664 billion was collected in 2023-24, which was up from last year’s Rs36.926 billion and showed a 54.3 per cent increase.

The total FED collection jumped by more than 56 per cent, climbing from Rs369.9 billion to Rs577.4 billion this fiscal year.

This boosted the FED’s contribution to FBR’s total revenue from 5.2 per cent to 6.2 per cent. Industries like cigarettes, cement, air travel, and beverages were the main drivers behind this increase.

As per the FBR, most sectors experienced growth, except for concentrates and motor cars.

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