Federal Excise Duty (FED) in Pakistan is a tax imposed by the federal government on the manufacture and sale of certain goods within the country, including imported goods. The purpose of the FED is to generate revenue for the government and regulate the production and sale of certain goods.
The rate of FED varies depending on the type of goods being taxed and is determined by the Pakistan Federal Excise Duty Act, 2005. Some examples of goods that are subject to FED in Pakistan include tobacco products, soft drinks, and luxury items. The FED is typically paid by the manufacturer or importer of the goods and is included in the price of the goods for the consumer.
Federal Excise Duty (FED) in Pakistan can be classified into different types based on the type of goods being taxed and the rate of duty applied. Some of the types of FED in Pakistan include:
- FED on Tobacco Products: This type of FED is imposed on the manufacture and sale of tobacco products such as cigarettes and is typically around 24.5% of the retail price.
- FED on Soft Drinks: This type of FED is imposed on the manufacture and sale of soft drinks such as carbonated beverages and is typically around 13-20% of the retail price.
- FED on Luxury Items: This type of FED is imposed on the manufacture and sale of luxury goods such as high-end vehicles and expensive jewelry. The rate of FED on luxury items can be higher than the rates applied to other goods.
It’s important to note that the rate of FED may change based on government policies and other factors, and I would recommend checking with the Pakistan Federal Board of Revenue for the most up-to-date information on FED.