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.
PTI launches 90-day ‘do or die’ movement across Pakistan
- 5 hours ago

Emergency vaccination reduced deaths by nearly 60% during epidemics, study finds
- 2 hours ago

Yanks' Rodon replaces Fried on AL All-Star team
- 13 hours ago
Kim Jong-un offers full support to Russia in Ukraine war
- an hour ago

High risk near rivers as Tarbela spillways open today
- 4 hours ago
Iran confirms assassination attempt on President Pezeshkian amid Israeli airstrikes
- 4 hours ago

Sindh police give 10-day deadline to personnel to quit gutka, mawa use
- 3 hours ago
Rawalpindi to Multan bus meets accident; 5 in critical condition
- 5 hours ago

Kashmir Martyrs’ Day: A historic reminder of struggle and sacrifice
- 5 hours ago

Wildlife force deployed as no-bird zones enforced near Lahore airport
- 4 hours ago
WWE icon Goldberg bids farewell after 27-year wrestling career
- 5 hours ago
WhatsApp introduces new feature to show how many people are typing in group chats
- 3 hours ago