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

U.S. Fifth Circuit judges question FDA’s claim it has no de facto ban on flavored refillable e-cigarettes
U.S. Fifth Circuit judges question FDA’s claim it has no de facto ban on flavored refillable e-cigarettes
Law360 reports that a Fifth Circuit panel expressed skepticism about the FDA’s claim that it has no de facto ban on flavored refillable e-cigarette products, noting that only six applications had been approved out of hundreds of thousands and that near-100% denials look like a ban.
Jan.07 by 2FIRSTS.ai
Poll Shows Britons Favor Regulation Over Bans on Nicotine Pouches
Poll Shows Britons Favor Regulation Over Bans on Nicotine Pouches
A new poll commissioned by We Vape UK reveals that most Britons favor regulation — not prohibition — of nicotine pouches. The survey shows broad public support for harm-reduction policies and frustration with weak government regulation, contrasting sharply with Ireland’s recent decision to ban disposable vapes and impose strict limits on nicotine products.
Nov.25 by 2FIRSTS.ai
South Korea National Assembly Approves Bill to Regulate E-Cigarettes Under Tobacco Law After Nine Years of Debate
South Korea National Assembly Approves Bill to Regulate E-Cigarettes Under Tobacco Law After Nine Years of Debate
South Korea’s National Assembly Legislation and Judiciary Committee passed a long-debated amendment to the Tobacco Business Act on November 26, expanding the legal definition of tobacco to include synthetic nicotine e-cigarettes. The amendment aims to end the regulatory blind spot surrounding such products while ensuring transitional support for vape retailers and a grace period for compliance.
Nov.26 by 2FIRSTS.ai
Mexican Congress Postpones Debate on Vape and E-Cigarette Ban
Mexican Congress Postpones Debate on Vape and E-Cigarette Ban
Mexico’s Chamber of Deputies has postponed the debate on a reform to the General Health Law that seeks to completely ban the sale and distribution of electronic cigarettes and vapes. Lawmaker Amancay González Franco (MC) criticized the draft for excluding tobacco heating devices, such as Philip Morris’s IQOS, arguing that these products are even more harmful according to the World Health Organization.
Dec.05 by 2FIRSTS.ai
Illegal Vape Suppliers Move Online After Queensland Crackdown
Illegal Vape Suppliers Move Online After Queensland Crackdown
Less than two weeks after Queensland police raided and shut down tobacconists suspected of selling illegal e-cigarettes, at least one supplier has moved its business online. Flyers with QR codes advertising same-day delivery of vapes, tobacco, and nicotine pouches were found taped to electricity poles across the Gold Coast.
Dec.05 by 2FIRSTS.ai
BAT Expects Around 2% Revenue and Operating Profit Growth in FY25
BAT Expects Around 2% Revenue and Operating Profit Growth in FY25
British American Tobacco (BAT) reaffirmed its 2026 guidance while announcing a £1.3 billion (approximately USD 1.65 billion) share buyback for FY26. The company expects around 2% growth in revenue and adjusted profit from operations for FY25. Accelerating New Category growth, driven by Velo Plus and improving U.S. Vuse performance, is expected to deliver double-digit H2 revenue growth.
Dec.09 by 2FIRSTS.ai