The intervention would also significantly impact health costs associated with smoking, projected to be reduced from Rs615 billion to Rs418.2 billion, effectively reducing the gap between revenue and health costs to Rs82 billion

Islamabad: Health advocates on Saturday proposed a 37% increase in taxes on tobacco products in Pakistan to reduce consumption, increase revenue and bridge the gap in health costs associated with smoking.
This proposed increase would translate into a substantial rise in government revenue, estimated to reach Rs336 billion from the current Rs240 billion. The intervention would also significantly impact health costs associated with smoking, projected to be reduced from Rs615 billion to Rs418.2 billion, effectively reducing the gap between revenue and health costs to Rs82 billion.
Malik Imran Ahmad, Country Representative Campaign for Tobacco Free Kids (CTFK) said that the effectiveness of high tobacco taxation as a vital measure in combating tobacco consumption, as advocated by the World Health Organization (WHO). The industry can absorb at least a 40% increase in taxes, and the IMF and World Bank have recommended Pakistan introduce a single-tier tax structure for cigarettes. Despite efforts to increase taxes, low cigarette prices persist, contributing to sustained high consumption levels. By adopting these reforms, Pakistan can make cigarette taxation more effective and align it more closely with international best practices.
Imran said that the illicit market share is exaggerated by multinational companies. The industry has been found to underreport production to evade taxes, violating tax laws and prioritizing profits over public health.
Mehboob Ul Haq, Chief Executive Officer at the Human Development Foundation (HDF),
underscored the immense benefits of boosting tobacco taxation, stating, “Tobacco taxation is a globally recognized and effective tool to reduce affordability and consumption.” He stressed the urgent need for stringent regulation of all tobacco products, reaffirming HDF's steadfast commitment to forging a healthier and more prosperous Pakistan, where the well-being of our youth is paramount.
Muhammad Asif Iqbal, Managing Director of the Social Policy and Development Centre (SPDC) said smokers’ response to price changes suggests an enormous potential for taxation to discourage smoking in Pakistan. As a result of the recent hike in the FED on cigarettes and the corresponding increase in prices, cigarette consumption has declined by 19.2%. He was presenting preliminary results of a nation-wide survey of over 5,000 smokers conducted by SPDC.

The Supreme Court just revived Trump’s attempt to sabotage the 2026 election
- 7 hours ago

The cat-and-mouse game over 3D-printed guns has begun
- 9 hours ago

ESPN streaming plans are getting more expensive
- 9 hours ago

The Witcher 4 developers target a 2028 release
- 9 hours ago

Trump’s new attempt to seize control of the Federal Reserve, explained
- 7 hours ago

Watch Valve set up the Steam Frame in its own leaked videos
- 9 hours ago

Robotaxis are real now — so is the pushback
- 9 hours ago

Why does it seem like food recalls are out of control this year?
- 9 hours ago
The Pixel 11 Pro is a great phone, no thanks to its flashiest new features
- 9 hours ago
PRA tightens enforcement against fraudulent tax returns, orders data-driven scrutiny
- 21 hours ago
Fire at PIMS Nursery leaves 15 newborns dead
- 27 minutes ago

Tesla sunsets its Solar Roof tiles
- 9 hours ago









