ISLAMABAD - The government’s decision to raise the Federal Excise Duty (FED) on cigarettes has yielded a notable increase in revenue while simultaneously contributing to a reduction in cigarette consumption. The Federal Board of Revenue (FBR) Yearbook 2022-23 substantiated the noteworthy development, according to which the share of cigarettes in the overall FED collection has escalated to 40 percent. The report said that the share of the top ten sectors is about 94 percent and cigarette stood at top of the list followed by cement with 18.7 percent and concentrates 9.6 percent share. This upswing is chiefly attributed to the imposition of higher FED rates on cigarettes. The fiscal year 2022-23 saw three significant upward revisions, ending a three-year stagnation period. “One of the major sectors which contributed to FED revenues included cigarettes due to both inflation and increase in excise duty rates,” the FBR Yearbook said. As cigarette consumption diminishes, consequential reduction in health-related issues could result in a positive impact on healthcare expenditures, contributing to a healthier and more sustainable society. The decrease in tobacco usage also aligns with the broader public health objective.