Pakistan Government Increases Tobacco Tax to Address Public Health Crisis

Regulations by 2FIRSTS.ai
Apr.18.2024
Pakistan Government Increases Tobacco Tax to Address Public Health Crisis
Pakistan government raises tobacco taxes to address public health and revenue pressures, with research showing impact on smoking habits.

According to a report by Daily Times on April 18, the Pakistani government has decided to increase taxes to address the dual pressures of public health and revenue generation.

 

A study released a few months ago by the academic researchers and professionals of "Capital Calling" showed that for every 94 smokers, one quit smoking after an increase in tobacco prices. The report highlighted that government decisions to raise taxes are a key strategy for addressing public health issues and revenue deficits.

 

The Federal Board of Revenue (FBR) of Pakistan has increased the tax on the first tier of tobacco from 130 rupees (0.47 USD) to 330 rupees (1.19 USD), resulting in a net increase of 154%. This decision by the FBR is aimed at increasing revenue for the current fiscal year from 148 billion rupees (5.3 billion USD) to 200 billion rupees (7.2 billion USD).

 

This study was conducted in major cities including Islamabad, Rawalpindi, Lahore, and Peshawar. The surveyed smokers commonly expressed that the financial burden of purchasing cigarettes is becoming increasingly heavy, leading them to prioritize spending on food and basic needs such as their children's education. The report further adds that over the past seven years, due to lobbying by multinational tobacco companies for low tax policies, Pakistan has potentially lost up to 567 billion Pakistani rupees (2.04 billion US dollars) in revenue.

 

Furthermore, there is evidence to suggest that if the government further increases federal consumption taxes on the tobacco industry, cigarette sales in Pakistan will further decrease in the coming months.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Bringing Tax and Insurance Into Nicotine Regulation: Insights From a Tobacco Harm-Reduction Report
Bringing Tax and Insurance Into Nicotine Regulation: Insights From a Tobacco Harm-Reduction Report
A smoke-free nicotine policy report argues that tobacco harm reduction should move beyond product bans and health warnings into tax policy, insurance pricing and risk-based regulation. While some projections remain open to debate, the report highlights a wider challenge: nicotine products, technologies and consumer behavior have changed sharply over the past decade, and regulatory systems may need new tools to better align tobacco control with harm-reduction goals.
Jun.08
AIR Expects to Complete CAEP Business Combination in Q2 2026 and List on Nasdaq
AIR Expects to Complete CAEP Business Combination in Q2 2026 and List on Nasdaq
AIR Limited and Cantor Equity Partners III announced that the F-4 registration statement related to their proposed business combination was declared effective by the U.S. Securities and Exchange Commission on April 22, 2026. Under the arrangement first announced on Nov. 7, 2025, the combined company, AIR Global PLC, is intended to list on Nasdaq in the United States under the ticker “AIIR.”
Apr.24 by 2FIRSTS.ai
FDA Tobacco Center Pushes Review-Efficiency Statement After Commissioner’s Exit
FDA Tobacco Center Pushes Review-Efficiency Statement After Commissioner’s Exit
FDA CTP issued a May 7 statement on accelerating product review and improving PMTA efficiency, but did not push it via official X and newsletter until May 13, one day after FDA Commissioner Marty Makary’s resignation was confirmed. FDA has not explained the delay, and no public evidence links it directly to the leadership change. The timing is notable given CTP’s usual 24-hour distribution practice.
Special Report
May.14
BAT New Zealand Says Illicit Tobacco Trade Drove Nearly 29% Revenue Decline in 2025
BAT New Zealand Says Illicit Tobacco Trade Drove Nearly 29% Revenue Decline in 2025
British American Tobacco New Zealand said the illicit tobacco trade is responsible for its profit halving and revenue falling between the 2024 and 2025 financial years. Financial results filed with the Companies Office show that BAT Holdings (New Zealand) recorded 2025 revenue of NZ$180.7 million, or about US$106.95 million based on the European Central Bank’s April 27, 2026 reference rates, down from NZ$254 million, or about US$150.33 million, in 2024.
Apr.28 by 2FIRSTS.ai
Spanish parties PP and PSOE reach agreement on sales restrictions for e-cigarettes and nicotine pouches
Spanish parties PP and PSOE reach agreement on sales restrictions for e-cigarettes and nicotine pouches
Spain’s Popular Party and Socialist Party reached an agreement in the Joint Congress-Senate Commission for the Study of Addiction Problems and approved a non-binding motion calling for the sale of e-cigarettes, nicotine pouches and related products to be limited to authorized and controlled channels, such as tobacco shops and specialized stores, while excluding internet sales and general retail outlets.
Apr.27 by 2FIRSTS.ai
Cross-Party Romanian Lawmakers Propose Ban on E-Cigarettes and Heated Tobacco Use in All Enclosed Public Spaces
Cross-Party Romanian Lawmakers Propose Ban on E-Cigarettes and Heated Tobacco Use in All Enclosed Public Spaces
Lawmakers from Romania’s USR, PSD and PNL have submitted a bill that would ban e-cigarettes, vapes and heated tobacco devices in all enclosed public spaces. The proposal would redefine “smoking” so that inhaling aerosols produced by heating or vaporizing products containing tobacco, nicotine or other substances intended for inhalation would also be considered smoking, except for medical-use products.
Apr.17 by 2FIRSTS.ai