Daily Times

The Federal Board of Revenue has said that health is a provincial subject and Federation cannot levy health tax on tobacco consumption. Hence, it was decided to enhance the federal excise duty on cigarettes in order to discourage smoking. The Parliament through Finance Act 2019 abolished three-tier tax structure on cigarettes and also enhanced the FED significantly.

In the budget speech 2019-20, the then revenue minister had clarified that federal share of federal excise duty realized from tobacco sector would be preferably allocated to Ministry of National Health Services, Regulations and Coordination. Resultantly issue of health levy stands resolved.