Finance Act 2024: Implications of Cigarette Tax Policy

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Even though the Government of Pakistan was under tremendous pressure to increase taxes in various sectors to generate additional revenue for financing the fiscal deficit in the fiscal year 2024-25, it surprisingly spared the cigarette industry from any tax hike. The Finance Act 2024 passed by the National Assembly on June 28, 2024 remained silent on enhancing the rate of Federal Excise Duty (FED) on cigarettes.