ISLAMABAD: The federal cabinet has approved a flat tax on all cigarettepackets and soft drinks to try to plug a gaping budget deficit anddiscourage tobacco consumption, a document seen by Reuters said.
The cabinet made the decision in late May, which is likely to be enforcedafter the parliament approves the 2019/2020 fiscal budget, due to beannounced in parliament on Tuesday.
A health tax of Rs10 rupees tobacco for a pack of 20 cigarettes and onerupee for every 250 ml soft drink will be imposed, the document from thecabinet division said.
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“The revenue generated through this health tax will be earmarked for thehealth sector development over and above its routine budgetary allocation,”it said.
