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Smoking to get costlier

Senior  reporter

Senior reporter

Finance Minister Abul Hassan Mahmood Ali has proposed raising supplementary duty on cigarettes by 1 percentage point, fixing it at 66 percent.

He said: "Cigarettes are extremely harmful to human health. To reduce the use of such harmful products and increase revenue collection, I propose to fix the supplementary duty rate at 66 percent instead of 65 percent."

The minister said in his budget speech on Thursday.

He also recommended increasing the value added tax on the local production of cigarettes and bidi paper (a type of cheap cigarette made of unprocessed tobacco wrapped in leaves) to 15 percent instead of the existing 7.5 percent.


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