Islamabad Tobacco Vend Licence: Rs 2,000 a Year for Cigarette and Naswar Shops, 3 Requirements
Islamabad tobacco vend licence: Rs 2,000 a year for shops selling cigarettes, gutka or naswar, the CNIC and rent papers needed, the school rule and the steps.
Short answer: A shop in Islamabad that sells cigarettes, gutka, naswar or any other tobacco product needs a tobacco vend licence from the Islamabad Excise and Taxation Department. The fee is Rs 2,000 a year. You need the shopkeeper's CNIC, the shop's location and rent agreement, and the shop must not be near any educational institution.
The fee is charged under the Tobacco Vend Act, 1958 (Act XXXVIII of 1958). We read the Islamabad Excise and Taxation Department's own service list on its website, islamabadexcise.gov.pk, on 10 November 2026. It lists seven non-vehicle taxes and fees. The tobacco vend fee is one of the smallest, and one of the easiest for a small shop to forget.
Islamabad tobacco vend licence costs Rs 2,000 a year
The department's page states the rate in one line: "Annual Tabacco Vend is: Rs. 2000/-". So it is a yearly charge, not a one-time fee. A shop that keeps selling tobacco pays it every year.
The page describes the fee as "recovered from the Shopkeepers dealing with the sale/purchase of Tobacco/Cigarettes". It calls it a "License fee for retail tobacco vendors selling cigarettes, gutka, naswar, or other tobacco products". A general store with a cigarette shelf counts. So does a paan or naswar stall.
| Item | What the Excise page says |
|---|---|
| Law | Tobacco Vend Act, 1958 (XXXVIII of 1958) |
| Who pays | Shopkeepers who sell or buy tobacco and cigarettes |
| Products covered | Cigarettes, gutka, naswar and other tobacco products |
| Fee | Rs 2,000 a year |
| Location rule | Not near any educational institution |
Three requirements before you apply
The department lists three things. Two are papers. The third is a condition about where your shop is. If the shop fails the third, the papers will not help.
- CNIC of the shopkeeper. Take the original and a photocopy.
- Shop location and rent agreement. Bring the rent agreement, or your ownership papers if the shop is yours, and the exact address.
- Not near any educational institution. A shop beside a school, college or university will not qualify.
The Excise page does not give a distance for the school rule. If your shop is in the same block as a school, ask the Excise office before you stock tobacco or pay rent for that purpose.
How to get the licence, step by step
The department does not show an online form for this fee. Other Excise services in Islamabad start with an application to the Excise and Taxation Officer (ETO), so plan on visiting the office in Sector H-9. The page does not spell out the steps, so the list below is the usual Excise route; confirm each step at the counter.
- Check that your shop is not near a school, college or university.
- Make photocopies of your CNIC and the shop's rent agreement.
- Visit the Islamabad Excise and Taxation office in H-9 on a weekday.
- Ask the ETO's office for the tobacco vend fee challan.
- Pay Rs 2,000 at the bank named on the challan.
- Return the paid challan and collect your licence. Keep it in the shop.
Go early. The office's counters close well before the office does; our guide to Islamabad Excise office timings has the exact hours and the Friday break.
Wholesalers also pay Rs 2,000 as professional tax
The tobacco vend fee is for retail vendors. Wholesalers show up in a separate line. Islamabad's professional tax schedule lists "Tobacco Vendors - Wholesalers: Rs. 2,000". That is a professional tax, charged under a different law, the West Pakistan Finance Act, 1964.
| Business | Charge | Amount |
|---|---|---|
| Retail shop selling tobacco | Tobacco vend fee | Rs 2,000 a year |
| Tobacco wholesaler | Professional tax | Rs 2,000 |
| Other shops, by employees (up to 10) | Professional tax | Rs 1,000 |
A shop may owe professional tax on top of the vend fee, depending on its size and trade. See the full list in our Islamabad professional tax rates guide before you pay, so you know every charge your shop carries.
Other rules that apply to a tobacco shop
The vend licence is only one rule. Federal law also limits who you can sell to. The Prohibition of Smoking and Protection of Non-Smokers Health Ordinance, 2002 bars selling cigarettes to anyone under 18. A licence does not change that.
Keep these points in mind behind the counter:
- Do not sell to children, even if an adult has sent them.
- Keep your licence and the last paid challan in the shop, where an inspector can see them.
- Pay the fee again each year. The Excise page calls it an annual fee.
- Ask the Excise office what to do if you move the shop, because the application is made for one shop location.
The fee is small, and paying it keeps your shop on the right side of the 1958 Act. Street sellers with a cart need a separate permission too; see how a street vendor gets a licence in Pakistan.
Islamabad Excise collects six other fees and taxes
The tobacco vend fee sits in a list of seven non-vehicle charges on the department's website. Knowing the others helps a shop owner see what else may apply.
- Professional tax, by capital, staff numbers or profession.
- Real estate agent fee and motor vehicle dealer fee: Rs 2,000 registration, Rs 600 renewal, Rs 10,000 security. See our dealer registration guide.
- Liquor permit for non-Muslims: Rs 300, which the department lists as a biannual fee.
- Entertainment duty on ticketed events, now 50 per cent.
- Bed tax on hotels and guest houses, 5 per cent of room rent.
Common questions
How much is the tobacco licence fee in Islamabad?
Rs 2,000 a year, under the Tobacco Vend Act, 1958, according to the Islamabad Excise and Taxation Department's website on 10 November 2026.
Do I need a licence to sell naswar in Islamabad?
Yes. The department says the fee is a licence fee for retail vendors selling cigarettes, gutka, naswar or other tobacco products.
What documents are needed for an Islamabad tobacco vend licence?
The shopkeeper's CNIC and the shop's location and rent agreement. The shop must also not be near any educational institution.
Can I sell cigarettes near a school in Islamabad?
The Excise department lists "Not near to any educational Institute" as a requirement for the licence. A shop next to a school should expect to be refused.
Is the tobacco vend fee paid every year?
Yes. The department describes it as an annual fee of Rs 2,000. Renew it each year while you sell tobacco.
Do tobacco wholesalers pay the same fee?
Wholesalers are listed under professional tax, at Rs 2,000. That is a separate tax from the retail vend fee.
About the author
Tax, Bills and Technology Writer
Ali Akhtar is a young and curious voice here at Pakistan Era. He is currently pursuing his A-Levels and has a growing interest in Pakistan’s changing industrial landscape and educational trends. Ali likes to write in a way that helps him explain and explore the world around him. His writing reflects the perspective of the new generation navigating the evolving trends of Pakistan where technology, youth innovation, and shifting opportunities are reshaping the country’s future.
