ISLAMABAD - President Arif Alvi signed the Tax Laws (Second Amendment) Ordinance, 2022—a mini budget to generate additional revenue to bridge the tax collection gap that created after waiving off fixed tax from small traders through electricity bills. The president gave the approval to the Ordinance on the advice of the prime minister under the Article 89(1) of the Constitution. Under the Ordinance, the amendments have been made in Sales Tax Act 1990, Income Tax Ordinance 2001, Federal Excise Act 2005 and Finance Act 2022. Under the Ordinance, the government has increased tax on tier-I cigarettes from Rs1850 to Rs2050 per thousand cigarettes. Meanwhile, it has enhanced tax on tier-II from Rs5900 to Rs6500 per thousand cigarettes. Similarly, the Rs10 per kg cess tax on tobacco is being increased to Rs380 per kg. The government would generate around Rs36 billion from taxing cigarettes and tobacco. Meanwhile, the government has imposed variable taxes — 5% sales tax and 7.5% income tax —on every shopkeeper, which would able to generate Rs27 billion during  the current fiscal year as against the target of Rs42 billion.