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Tag: duties

  • Pakistan Sees Cigarette Revenue Fall Despite Huge Tax Hike

    Pakistan Sees Cigarette Revenue Fall Despite Huge Tax Hike

    Despite a 200% increase in duty rates, Pakistan’s Federal Board of Revenue (FBR) reported a 4.1% drop in Federal Excise Duty (FED) collection from the cigarette sector, falling to Rs225.5 billion ($789.3 million) in FY2024-25 from Rs235 billion ($822.5 million) the previous year. Officials attributed the decline to a growing illicit cigarette market, which continues to undermine tax collection.

    The sector’s share in total FED revenue plunged from 40.7% in FY24 to 29.4% in FY25, highlighting enforcement challenges and the government’s struggle to curb illegal production and sales. Higher taxes have reportedly pushed consumers toward untaxed brands, further reducing formal industry revenue.

    FBR officials warned that without stronger enforcement against illicit cigarette trade, the formal tobacco industry will continue to shrink, depriving the government of vital revenue for development and public health programs.

  • Trinidad and Tobago Doubles Duties on Cigarettes, Alcohol

    Trinidad and Tobago Doubles Duties on Cigarettes, Alcohol

    Two weeks after Trinidad and Tobago’s Ministry of Health said it was laying the groundwork for a new approach to tobacco control, its Finance Minister, Davendranath Tancoo,  announced the doubling of customs duties on alcohol and tobacco products, measures expected to account for 80% of next year’s projected revenue growth. Combined with additional customs fees, high-end electric vehicle taxes, and a new 5% import tax on single-use plastics, the island nation is expecting to generate an additional $1 billion in annual revenue.

    Effective immediately, cigarette duties were raised from $5.26 to $10.52 per pack of 20, while alcohol went from $79.25 to $158.50 against percent of alcohol content, and beer from $5.14 to $10.28 by gravity. Beginning January 1, the customs declaration fee will double to $80, and the container processing fee doubles to $1,050, while EVs valued over $400,000 will face a 10% duty, 12.5% VAT, and a tiered motor vehicle tax.