Reducing Tobacco Consumption through Higher Prices: A Study from Pakistan

Regulations by 2FIRSTS.ai
May.17.2024
Reducing Tobacco Consumption through Higher Prices: A Study from Pakistan
World Health Organization study shows illegal tobacco market in Pakistan not as claimed by industry, accounting for 23.1% of total trade.

According to a report by the Pakistani media outlet "Business Recorder" on May 15th, a recent study by the World Health Organization found that despite claims by the tobacco industry, there is not a significant presence of illegal tobacco markets. However, illegal tobacco trade accounts for 23.1% of the total trade volume.

 

The study points out that the most effective way to reduce tobacco consumption is to increase the price of tobacco products. The world's highest level health organizations emphasize that Pakistan should raise the prices of tobacco products by taxing the tobacco industry heavily. According to the study based on data from the Pakistan Bureau of Statistics, the amount of tax evasion on domestically produced cigarettes in 2015-2016 reached 53.8 billion Pakistani Rupees, of which 38.9 billion Pakistani Rupees, or over 72% of the total, was evaded by legal entities.

 

The study cited a survey conducted in the federal capital of Islamabad, revealing that Pakistan Tobacco Company (PTC) is one of the largest tobacco companies, with a market share of over 56% in Islamabad, while Philip Morris International (PMI) accounts for over 20% of the market. The research found that the illegal market share is approximately 23%, with 47% being smuggled, 45% being untaxed, and counterfeit cigarettes making up 8% of the illegal market share.

 

At the same time, anti-tobacco activists are urging the government to increase tobacco taxes to 70% of the retail price, following the guidelines of the World Health Organization to address the alarming rate of tobacco consumption among young people.

 

The Pakistani leader of the Smoke-Free Child movement, Malik Imran Ahmed, emphasized the urgent need for action and cited the significant impact of tobacco use on public health. "In a country where more than 60% of the population are young people, the government must protect them from the dangers of tobacco use," he said.

 

He said that this move is expected to generate additional revenue of over 200 billion rupees by the end of the year, and will help offset the medical expenses incurred due to smoking-related diseases. Tobacco consumption causes approximately 160,000 deaths each year, accounting for 1.4% of Pakistan's GDP in healthcare expenditures.

 

Notice

1. This article is provided exclusively for professional research purposes related to industry, technology and policy. Any reference to brands or products is made solely for the purpose of objective description and does not constitute an endorsement, recommendation, or promotion of any brand or product.

2. The use of nicotine products, including but not limited to cigarettes, e-cigarettes, and heated tobacco products, is associated with significant health risks. Users are required to comply with all relevant laws and regulations in their respective jurisdictions.

3. This article is strictly restricted from being accessed or viewed by individuals under the legal age.

Copyright

This article is either an original work by 2Firsts or a reproduction from third-party sources with the original source clearly indicated. The copyright and usage rights of this article belong to 2Firsts or the original source. Unauthorized reproduction, distribution, or any other unauthorized use of this article by any entity or individual is strictly prohibited. Violators will be held legally responsible. For copyright-related matters, please contact: info@2firsts.com

AI Assistance Disclaimer

This article may have utilized AI to enhance translation and editing efficiency. However, due to technical limitations, errors may occur. Readers are advised to refer to the sources provided for more accurate information.

This article should not be used as a basis for any investment decisions or advice, and 2Firsts assumes no direct or indirect liability for any errors in the content.

Yinghe: Will Disclose Info on Sikary Share Acquisition
Yinghe: Will Disclose Info on Sikary Share Acquisition
Yinghe Technology said that if the company plans to purchase the remaining shares of Sikary, it will strictly fulfill its information disclosure obligations in accordance with laws, regulations, and disclosure requirements.
May.08 by 2FIRSTS.ai
New York Legislators Push for Stronger Enforcement Against Illegal E-cigarettes
New York Legislators Push for Stronger Enforcement Against Illegal E-cigarettes
US Democrat urges NY governor to crack down on illegal flavored e-cigarette and vape sales, despite existing bans.
Apr.07 by 2FIRSTS.ai
Imperial Brands 2030 Strategy: Driving Growth and Value Creation
Imperial Brands 2030 Strategy: Driving Growth and Value Creation
Imperial Brands unveils 2030 strategy to boost traditional tobacco and NGP business growth, focus on key markets for revenue increase.
Mar.27 by 2FIRSTS.ai
Selangor, Malaysia Mulls Full E-Cigarette Sales Ban; Policy Proposal to be Reviewed
Selangor, Malaysia Mulls Full E-Cigarette Sales Ban; Policy Proposal to be Reviewed
The Selangor state government is evaluating a potential full ban on e-cigarette sales, with a policy proposal set to be presented to the state executive council for review, considering health and social impacts. Earlier, Terengganu announced a complete e-cigarette sales ban starting in August.
May.13 by 2FIRSTS.ai
Dublin Proposes to Ban New E-cigarette Stores in the City Center, With a Vote on May 15
Dublin Proposes to Ban New E-cigarette Stores in the City Center, With a Vote on May 15
The Dublin City Council in Ireland is reviewing Ordinance No. 2503, which aims to prohibit the opening of new e-cigarette stores within the city center. The proposal will undergo its second reading at Dublin City Hall on May 15, followed by a public hearing and vote at a subsequent council meeting.
May.06 by 2FIRSTS.ai
Goldman Sachs: Chinese Brands Geek Bar and Breeze Surge in U.S. Market as Juul, Vuse Lose Share
Goldman Sachs: Chinese Brands Geek Bar and Breeze Surge in U.S. Market as Juul, Vuse Lose Share
Chinese brands Geek Bar, Raz, and Breeze are quickly rising in the U.S. e-cigarette market, now holding a combined 25.1% share, Goldman Sachs reports. While Vuse and Juul lost ground, Geek Bar Pulse jumped 729%, Raz 233%, and Breeze 105% over the past year.
May.22 by 2FIRSTS.ai