Tax on cigarette to rise

The interim government has proposed a 5 percent advance tax on the turnover of cigarette producers, which was 3 percent previously.

Considering their profits, the source tax was proposed by Finance Adviser Salehuddin Ahmed in the budget for fiscal year of 2025-26. 

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Meanwhile, the government proposed that the turnover tax rate be set at 1 percent for all except mobile operators, tobacco manufacturers, and carbonated beverage producers.

Finance Adviser Salehuddin Ahmed also proposed to double the supplementary duty on cigarette paper to 300 percent from existing 150 percent. So, the cost of production of cigarettes may rise.

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