AJK Govt Notifies Huge Increase in Excise Duty on Cigarettes

The Government of Azad Jammu and Kashmir Tuesday substantially raised Federal Excise Duty on cigarettes from February 14, 2023. In this regard, the Federal Board of Revenue (FBR) Azad Kashmir issued a notification on Tuesday. According to the AJK notification, the excise duty would be levied and collected on a fixed basis with effect from February 14, 2023. Under the first slab of cigarettes, locally produced cigarettes if their on-pack printed retail price exceeds Rs. 9,000 per 1,000 cigarettes, the rate of the federal excise duty would be Rs. 16,500 per 1,000 cigarettes. As per the second slab, the locally produced cigarettes if their on-pack printed retail price does not exceed Rs. 9,000 per 1,000 cigarettes, the rate of the FED would be Rs. 5,050 per 1,000 cigarettes, the notification added.