Federal cabinet approved flat health tax for FY 2019-20

Federal cabinet approved flat health tax for FY 2019-20
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ISLAMABAD: The federal cabinet has approved a flat tax on all cigarette packets and soft drinks to try to plug a gaping budget deficit and discourage tobacco consumption, a document seen by Reuters said.

The cabinet made the decision in late May, which is likely to be enforced after the parliament approves the 2019/2020 fiscal budget, due to be announced in parliament on Tuesday.

A health tax of Rs10 rupees tobacco for a pack of 20 cigarettes and one rupee for every 250 ml soft drink will be imposed, the document from the cabinet division said.

“The revenue generated through this health tax will be earmarked for the health sector development over and above its routine budgetary allocation,” it said.

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