PAKISTAN ZINDABAD

Review: The High Cost of Tobacco in Pakistan – A Call for Urgent Taxation Measures

Tobacco use in Pakistan exacts a staggering toll: an annual loss of $2.5 billion and the tragic loss of 164,000 lives. According to the World Health Organization (WHO), Pakistan loses approximately Rs700 billion annually to the devastating effects of tobacco, with children and teenagers among the most vulnerable to its harms.

In a recent statement, WHO emphasized the urgency of increasing tobacco taxation. Not only could this save lives, but it could also boost government revenues for health and development. As World No Tobacco Day approaches on May 31, WHO reaffirmed its commitment to support Pakistan in tackling this chronic health crisis.

The harmful impact of tobacco on public health and the economy threatens to derail Pakistan’s progress toward the 2030 Sustainable Development Goals. However, research consistently shows that tobacco taxation is a powerful tool: it curbs consumption, reduces the burden of tobacco-related diseases, and strengthens government finances.

The evidence is clear: after a tax increase on tobacco products in 2023, tobacco use in Pakistan dropped by 19.2%, with 26.3% of smokers cutting back on cigarettes. Moreover, revenue collection from the Federal Excise Duty (FED) on cigarettes rose by 66%, from Rs142 billion in 2022-23 to Rs237 billion in 2023-24.

Urgent and sustained action to increase tobacco taxation could transform Pakistan’s public health landscape while advancing the country’s economic and development priorities.