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.

References:

[1] Notable decline in cigarette consumption amidst govt's high tobacco tax decision

Also Read:

[1] Cape Province, Pakistan: 60-day Ban on E-cigarettes near Educational Institutions

[2] Chief Maulana Tayab Qureshi Urges Action Against E-Cigarette Usage

[3] Call for Permanent Ban on Sale and Use of E-Cigarettes in Pakistan

[4] Call for Permanent Ban on Sale and Use of E-cigarettes in Khyber Pakhtunkhwa

[5] Pakistan's Rising Fake Cigarette Scandal: Urgent Need for Stronger Measures

[6] Major Progress Made in Banning E-Cigarettes in Khyber Pakhtunkhwa

[7] Call for Nationwide Ban on Sale of E-cigarettes to Minors in Pakistan

[8] Pakistan's Determination to Achieve Tobacco-Free Nation in 10 Years

#Traditional tobacco #Legislation #Asia #Pakistan

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