Proposal to Increase Tobacco Tax in Pakistan for Health Benefits

Regulations by 2FIRSTS.ai
May.11.2024
Proposal to Increase Tobacco Tax in Pakistan for Health Benefits
Pakistan's Health Ministry suggests a 20% increase in tobacco federal consumption tax, while WHO insists on a 37% rise.

According to a report by Dawn News on May 11th, despite the proposal by the Pakistan Ministry of Health to increase the Federal Excise Duty (FED) on tobacco by 20%, the World Health Organization (WHO) has urged for a 37% increase in order to raise the tax share of retail prices to the international standard of 70%.

 

Anti-smoking activists have submitted a tax proposal to the Ministry of Health, which includes recommendations from the World Health Organization. The WHO emphasizes that raising tobacco taxes not only helps alleviate the pressure on healthcare systems but also increases tax revenue.

 

According to the tax proposal, maintaining the current level of federal excise tax (FED) could lead to a decrease in healthcare recovery. To achieve the healthcare cost recovery levels observed during the same period in 2023-2024, increasing the federal excise tax (FED) rate by 37% next year will help generate an additional 60 billion rupees (approximately 2.96 billion RMB) in value-added tax from tobacco.

 

This tax proposal also rejects the notion that increasing taxes will curb illegal trade, citing relevant studies that show tobacco companies falsifying their production reports to influence tax policies. For example, in Pakistan, currently, 31.6 million adults use tobacco, causing over 160,000 deaths each year, with smoking-related diseases and deaths accounting for at least 1.4% of the Gross Domestic Product (GDP) annually. Tax revenue from July 2023 to January 2024 reached 122 billion rupees, with an estimated total exceeding 200 billion rupees for the year.

 

This tax proposal calls for an increase in taxes that will help save lives, and requires the government to consider embedding a cost recovery mechanism in tobacco tax policies for the 2024-2025 fiscal year. This would ensure that a portion of all health costs caused by smoking is covered through automatic adjustments to consumption taxes.

 

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

Imperial Brands Urges Retailers to Engage in Government Consultation on Tobacco and Vapes Bill
Imperial Brands Urges Retailers to Engage in Government Consultation on Tobacco and Vapes Bill
Imperial Brands is calling on UK retailers to take part in the Government’s consultation on the Tobacco and Vapes Bill, which will shape a new licensing framework for nicotine product sales across England, Wales and Northern Ireland. The Department of Health and Social Care’s call for evidence closes on 3 December 2025. Imperial Brands stresses this is a key chance for retailers to influence policy, support fair competition, and help curb illicit sales.
Nov.04
U.S. Chicago CBP Seizes $358,000 Worth of Illegal Vapes
U.S. Chicago CBP Seizes $358,000 Worth of Illegal Vapes
U.S. Customs and Border Protection (CBP) officers in Chicago seized 43,200 illicit vaping products valued at over $358,000 for violating the Federal Food, Drug, and Cosmetic Act. The shipment originated from China and was destined for Mississippi.
Nov.07 by 2FIRSTS.ai
Breaking News | China’s Premier Li Qiang Issues Rare Directive to Crack Down on Illicit Tobacco Activities
Breaking News | China’s Premier Li Qiang Issues Rare Directive to Crack Down on Illicit Tobacco Activities
Based on combined reporting from Xinhua and Xinwen Lianbo, 2Firsts reports that Chinese Premier Li Qiang has issued a rare directive at a State Council executive meeting to launch comprehensive, full-chain enforcement against illicit tobacco activities.
News
Dec.05
California DOJ Outlines Next Steps for Unflavored Tobacco List; Enforcement to Target “Obviously Flavored” Products
California DOJ Outlines Next Steps for Unflavored Tobacco List; Enforcement to Target “Obviously Flavored” Products
The California DOJ issued Information Bulletin No. 2025-DLE-17 on November 10, 2025, providing an update on the state’s flavored tobacco enforcement. The Attorney General’s office is set to launch the Unflavored Tobacco List (UTL) by December 31, 2025, identifying tobacco products without characterizing flavors that may legally be sold in California. Enforcement will continue to focus on “obviously flavored” products, while unregistered products remain subject to seizure and penalties.
Nov.17 by 2FIRSTS.ai
Russian's Stavropol court convicts four men over illegal sales of disposable vapes
Russian's Stavropol court convicts four men over illegal sales of disposable vapes
A court in Russia’s Stavropol region convicted four local residents of illegal sales of disposable vapes, with the seized products valued at more than 26 million rubles (about $338,000). The regional prosecutor’s office said the organized group operated from March 2022 to June 2023, selling disposable electronic vapes in Stavropol, Nevinnomyssk and Mikhaylovsk, while the products lacked mandatory information required by law.
Dec.31 by 2FIRSTS.ai
UK to Implement e-cigarette Product Tax and Stamp Plan from October 1, 2026
UK to Implement e-cigarette Product Tax and Stamp Plan from October 1, 2026
HMRC announces e-cigarette tax stamp plan to combat illicit trade starting October 1, 2026 alongside VPD policy enforcement.
Nov.27 by 2FIRSTS.ai