The government started enforcing the mini-budget late Tuesday night.

As of February 14, 2023 the Federal Excise Duty on cigarettes will go up by 150 percent, and the sales tax will go up from 17 to 18 percent.

In this regard, on Tuesday evening, the Federal Board of Revenue (FBR) issued SRO.178(I)/2023.

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On Wednesday at midnight, a new 18% sales tax will be added to all imports.

As previously announced by FBR, the standard sales tax rate will increase to 18% on February 15 from 17.5%.

On Wednesday, the relevant agency issued a notice in this regard.

According to the S.R.O., the sales tax rate on taxable goods covered by subsection (1) of section 3 of the Sales Tax Act, 1990 has been raised from 17% to 18% by the federal government.


By virtue of paragraph (b) of subsection (2) of Section 3 of the Sales Tax Act, 1990. Proclamation No. 179 (1)/2023 was issued on Wednesday.

The notification states that under the first slab of cigarettes, the rate of federal excise duty will be Rs. 16,500 per thousand cigarettes for locally produced cigarettes with an on-pack printed retail price higher than Rs.

For locally made brands, the second-tier FED is Rs. 5050 per thousand cigarettes.

If the price on the package doesn’t go over Rs. 9000.

With approval from the cabinet, the FBR can send out notices that change how import duties are set up.

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