26% Tax Rise Vital to Combat Pakistan’s Tobacco Epidemic: Activists 

News Desk

Islamabad: Pakistan grapples with a significant challenge as widespread tobacco consumption affects over 31.9 million adults aged 15 years and above, comprising nearly 19.7 percent of the adult population.

Annually, smoking-related illnesses claim over 160,000 lives, amounting to a substantial 1.6 percent of the nation’s GDP each year.

However, in the fiscal year 2022-23, cigarette taxes covered only 16 percent of these expenses, marking a decline from 19.5 percent in 2019.

The prevailing situation necessitates a minimum increase of 26 percent in cigarette taxes in the upcoming federal budget.

During a briefing session with journalists in Islamabad on Wednesday, organized by the Society for the Protection of the Rights of the Child (SPARC), it was disclosed that SPARC, along with other organizations, had written a letter to the Finance Ministry of Pakistan, calling for an increase in taxation on cigarettes.

Dr Khalil Ahmad, SPARC program manager, emphasized that the affordability of cigarettes and the dire consequences of smoking on public health are critical issues requiring immediate attention.

When cigarettes are inexpensive, it can incentivize more individuals, particularly youth and those with limited financial resources, to initiate or sustain smoking despite the well-documented health hazards. The loss of innocent lives due to #-related illnesses is both heartbreaking and preventable, Dr Ahmad added .

This underscores the crucial need for implementing effective tobacco control measures, including heightened taxation on cigarettes, to raise their cost and discourage consumption.

Additionally, comprehensive tobacco control strategies should encompass not only taxation but also initiatives such as public awareness campaigns, smoke-free policies, and support for smoking cessation programs.

Malik Imran Ahmad, Country Head of Campaign for Tobacco-Free Kids (CTFK), emphasized that increasing tobacco taxes, as endorsed by global health organizations like the World Health Organization and the World Bank, can be an effective measure to curb consumption and generate revenue for healthcare.

The proposed 26.6 percent Federal Excise Duty (FED) increase for the fiscal year 2024-25 represents a significant stride forward. Not only could it help offset a substantial portion of healthcare expenses, but it also holds the potential to dissuade hundreds of thousands of individuals from smoking.

Moreover, the projected revenue boost could prove instrumental in funding various public health initiatives and bolstering the national economy. The prevalence of tobacco consumption in Pakistan and its attendant health and economic burdens, exacerbated by the easy affordability of cigarettes, is indeed alarming.

Organizations such as the Human Development Foundation, Aurat Foundation, Chromatic Trust, along with SPARC, have voiced their concerns regarding this critical public health issue.