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Tag: budget

  • WHO Wants Pakistan to Raise Cigarette Taxes

    WHO Wants Pakistan to Raise Cigarette Taxes

    The World Health Organization (WHO) criticized Pakistan’s Federal Cabinet’s decision to keep its Federal Excise Duty (FED) on cigarettes unchanged in the 2025–26 budget, saying it will likely boost consumption and undermine public health. According to a WHO analysis, FED rates haven’t increased since February 2023, while inflation has surged 26%, resulting in declining real prices and even greater affordability.

    For fiscal year 2024–25, WHO estimated cigarette production in Pakistan reached 37 billion sticks, generating Rs 208 billion ($728 million) in FED revenue. With excise duty unchanged, cigarette output is projected to rise to 38 billion sticks in 2025–26, yielding Rs 217.6 billion ($762 million) in revenue.

    WHO says a Rs 39 ($0.14) per pack FED increase would reduce smoking by 10.7%, lower production to approximately 34 billion sticks, and increase revenues by 20.9%.

  • House Working with Trump’s $6.8B FDA Budget

    House Working with Trump’s $6.8B FDA Budget

    House appropriators advanced a bill to fund the FDA for fiscal 2026 on a party-line vote out of a subcommittee yesterday (June 5)— but, according to Politico, the bill has a long path ahead before it potentially becomes law. The topline number from the House bill aligns with President Donald Trump’s budget proposal, which sought $6.8 billion for the FDA.

    The budget calls for $3.2 billion in direct appropriations, with the rest coming from user fee revenue. It also represents a $300 million cut in taxpayer funding compared to what the House Appropriations subcommittee sought last year for fiscal 2025.

    According to Politico, the Senate is likely to fund the agency at a higher level than the House. Sen. John Hoeven, the Republican senator in charge of FDA appropriations, said Trump’s proposal is a starting point.

    “We now have the president’s budget proposal,” Hoeven said. “But we’re going through our process now, and it will be different. … I think that you’ll see when we bring it out that we adequately fund FDA.”

  • Despite Increase, Pakistan Faces Cigarette Tax Revenue Shortfall

    Despite Increase, Pakistan Faces Cigarette Tax Revenue Shortfall

    Contrary to recent optimistic projections, Pakistan’s Federal Board of Revenue (FBR) tax collection from documented cigarette industry is expected to fall significantly from last year, highlighting growing challenges in the sector amid rising smuggling and regulatory inefficiencies.

    For the 2024-25 fiscal year, the government budgeted revenue collected from the cigarette industry to reach PKR 285 billion ($998 million). However, industry insiders and financial analysts say that figure is not grounded in factual analysis, and PKR 250 billion ($875 million) is more realistic.

    According to Business Recorder, a major factor behind the revenue shortfall is the exorbitant imposition of Adjustable Federal Excise Duty (FED) on acetate tow, a key raw material used in cigarette manufacturing. The industry recommended an adjustable FED rate of PKR 4,000 per kg, which was intended to increase the cost of doing business for the illicit players and was supposed to be adjusted against the final tax liability improving documentation and reconciliation. However, the government imposed a FED rate of PKR 44,000 per kg, a sharp rise that has inadvertently made smuggling far more lucrative and has led to a dramatic increase in illicit activity.  

  • Illinois Increases Taxes on Tobacco, Sports Books

    Illinois Increases Taxes on Tobacco, Sports Books

    Needing to raise an additional $500 million in revenue to balance its budget, Illinois legislators voted to increase taxes on tobacco, vapes, and sports gambling, and expand taxes on out-of-state income for businesses. The budget saw a 3.9% spending increase to $55.3 billion, with the Democratic majority receiving heavy criticism for providing next to no time for public review of the massive spending plan and other major bills, pushing through a previously unseen 3,000 pages of bills in the final 48 hours, according to ABC News.

    The state intends to raise tax rates on any “product that is made from or derived from tobacco,” including cigarettes, chewing tobacco, vaping products and nicotine gum, according to legislators. The tax rate will be raised from 36% of the wholesale price of the products to 45%, according to the legislation, but will not be applied to smoking cessation products, according to the text of the bill.

  • Connecticut Votes to Nearly Triple Budget in Tobacco Fight

    Connecticut Votes to Nearly Triple Budget in Tobacco Fight

    Connecticut’s Public Health Committee approved legislation to put $32 million into the Tobacco and Health Trust Fund for smoking cessation, a $20 million increase over the proposed budget from Gov. Ned Lamont. In 2023, the state invested $12 million into the program but it was suspended in 2024.

    The money to fund this program comes from the Tobacco Master Settlement agreement. Chris Collibee, budget spokesman for the Lamont administration, said the state will receive $109.6 million from the settlement in 2025, and $108.1 million in 2026. He also said each year $200,000 of the settlement money goes to the Attorney General’s office and the Department of Revenue Services to cover the costs of tobacco enforcement, with the rest going to the General Fund.

    The Connecticut Department of Public Health found that in 2023, 12.7% of high school students used a form of tobacco, down from 18.8% in 2022.