ISLAMABAD: Retailers may face penalties for selling counterfeit, smuggled, and untaxed cigarettes, as strict measures have been proposed against such practices in the Federal Budget for the fiscal year 2024-2025.
Minister for Finance and Revenue Senator Muhammad Aurangzeb suggested these actions while presenting the Federal Budget 2024-25 in the National Assembly on Wednesday.
The minister highlighted that the government and relevant departments are concerned about the widespread availability of these cigarettes in the market. Despite the introduction of a track and trace system, the presence of fake, smuggled, and untaxed cigarettes remains a significant challenge.
To address this, shops found selling cigarettes without tax stamps may face sealing or closure in the future.
Finance Minister Aurangzeb presented an Rs18.877 trillion relief-oriented federal budget for the fiscal year 2024-25.
The finance minister stated that the GDP growth target for the fiscal year 2024-25 is set at 3.6 percent, with an expected inflation rate of 12 percent. The budget deficit to GDP is projected at 6.9 percent, while the primary surplus is estimated to be 1.0 percent of the GDP.
The Federal Board of Revenue's revenue collection is estimated to be Rs12,970 billion for the upcoming fiscal year, with a 38 percent growth in tax revenue collection during the current fiscal year. The provincial share is projected to be Rs7,438 billion.
He also mentioned that the non-tax revenue targets for the federation are set at Rs3,587 billion, and the net income of the federal government is expected to be Rs9,119 billion.
