Ministry Seeks Action Against Philip Morris for FED Regime Non-compliance

Thu Aug 31 2023
icon-facebook icon-twitter icon-whatsapp

ISLAMABAD: The Ministry of Health has asked the Federal Board of Revenue (FBR) to take action against the multinational cigarette manufacturing company Philip Morris for showing non-compliance to the higher rates of the Federal Excise Duty (FED) applicable on low-priced and high-priced cigarettes.

Ministry of Health had lodged a protest before the FBR that the multinational cigarette manufacturing company has demonstrated non-compliance to the escalated FED rate, particularly in relation to both low-priced and high-priced cigarette variants.

Ministry of National Health Services has written a letter to the FBR Chairman on the ‘open violation’ of Tobacco Control Laws by cigarette manufacturers with regards to Federal Excise Duty / Taxes.

The letter reportedly said that the Federal Board of Revenue, Government of Pakistan has recently implemented elevated tobacco taxation rates on both cigarette packs and outers with the aim to mitigate the adverse effects of tobacco consumption. However, certain multi-national cigarette manufacturers, such as Philip Morris, have demonstrated non-compliance with the escalated Federal Excise Duty (FED) rate, particularly in relation to both low-priced and high-priced cigarette variants.

As the subject matter (FED and taxes) falls under the jurisdiction of Federal Board of Revenue, therefore, it is requested to take appropriate and stringent measures against the violators for their non-adherence of the prescribed regulations, (Naeem Akhtar) National Focal Point on WHO-FCTC & Illicit Trade added.

icon-facebook icon-twitter icon-whatsapp