Cigarette taxes cause heavy revenue loss

Lahore University of Management Sciences (LUMS) has sought the government’s immediate attention to the impact of tax policies, particularly the federal excise duty (FED) adjustment, on Pakistan’s cigarette industry, which is causing more revenue loss than revenue collection. The study titled “Impact of Taxation on the Cigarette Sector in Pakistan” has uncovered a pressing issue and invited swift attention. The study, led by LUMS Associate Professor of Economics Kashif Zaheer Malik, revealed that frequent and substantial increases in FED have had a profound effect on the cigarette industry. It highlighted the critical need for a balanced and effective tax policy that could address the challenges of tax evasion and provide a level playing field for all manufacturers.