The Federal Board of Revenue (FBR) has for the first time brought e-liquids used in vapes and electronic cigarettes under the scope of federal excise duty, fixing the rate at Rs16,500 per kilogram.
Users of vaping devices and electronic cigarettes are being urged to take note of the change, which took effect through amendments made to the Federal Excise Act 2005 up to June 30, 2026.
Under the new tax regime, manufacturers, importers and suppliers of e-liquids will be required to comply with the revised terms and restructure their business operations accordingly.
FBR has also updated the broader duty framework covering various other products through these amendments to the Excise Act. Officials said the changes form part of a wider strategy aimed at boosting federal revenue.
The imposition of the new excise duty is expected to push up the prices of electronic cigarettes and vape products. Industry stakeholders have already begun assessing the potential impact on consumer demand, market trends and business operations.
The inclusion of e-liquids within the scope of excise duty is being described as a significant shift for the vape market, with its effects likely to be felt by both consumers and businesses in the coming days.
