Govt can't levy FED on alcoholic beverages: expert
Raza Ashfaq Sheikh, tax consultant and former Chief Federal Board of Revenue/ Member Appellate Tribunal (PRA) told Business Recorder that it is important to clarify that under the existing constitutional framework, the federal government is not vested with the authority to levy excise duty on alcoholic liquors. Specifically, Entry No. 44 of the Federal Legislative List states: '44. Duties of excise, including duties on salt, but not including duties on alcoholic liquors, opium and other narcotics.'
He said in light of the above, any attempt to impose such a tax would be unconstitutional and is likely to be set aside by the superior courts.
Earlier, it was suggested that the Federal Board of Revenue (FBR) may consider imposing federal excise duty on the supply of alcoholic beverages as a means of generating substantial revenue.
If the government has any intention to tax alcoholic beverages, the government has many options. They can put minimum retail price (MRP), or 25 tax as luxurious item and budget makers can impose FED on its raw material and many other options to tax alcoholic beverages, another tax expert opined.
Copyright Business Recorder, 2025
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