The government has been urged to raise the federal excise duty (FED) on cigarettes by 37% in line with the recommendations of the World Health Organisation (WHO). This would not only increase the revenue generated by the government but also prevent people from falling prey to cigarettes.
Multiple advocacy groups suggested this.
They said that Pakistan has made significant progress in raising tobacco taxes, but the country still falls short of fully implementing WHO recommendations aimed at both saving lives and curbing tobacco use.
The WHO recommends that the tobacco excise taxes should be at least 70% of the retail price.
Pakistan operates a two-tiered FED system on cigarettes. Following increases during fiscal year 2022-23, the current FED share in retail prices stands at 48% and 68%, respectively, for low and high tiers.
The Global Tobacco Index said Pakistan has been a party to the WHO Framework Convention on Tobacco Control (WHO FCTC) since 2005. Progress has been achieved in enforcing tobacco control measures; however, tobacco industry interference has resulted in weakened policies.
The Global Tobacco Industry Interference Index 2023 has ranked Pakistan 32nd and noted that tobacco taxes, as a percentage of the retail price, stood at 61%. In contrast, the global standard was at 70%.
"We urge the government to align its policies with WHO recommendations and save lives," said Malik Imran Ahmed, the Country Head for the Campaign for Tobacco-Free Kids (CTFK).
In its latest policy paper, "Recovering Healthcare Costs and Saving Lives", the Social Policy Development Centre (SPDC) has proposed a 37% increase in FED in the next fiscal year's budget.
The SPDC estimates that the country can save 265,000 lives while generating an additional revenue of Rs37.7 billion and push 757,000 people to quit smoking if the FED is increased by 37%.
Pakistan has already suffered a staggering loss of Rs567 billion in revenue over the past seven years due to the influence of cigarette companies lobbying against tax increases.
"Pakistan direly needs robust implementation of WHO recommendations," said Maryam Gul, Director of the Centre for Research and Dialogue (CRD).
He said Pakistan still trails behind regional countries and the rest of the world due to low cigarette prices.
Pakistan is among the countries where smoking has a high prevalence. The data shows that a staggering 31.6 million adults—equivalent to nearly 20% of the adult population—use tobacco products in Pakistan.
Alarmingly, tobacco consumption is responsible for approximately 160,000 deaths annually, accounting for a considerable 1.4% of the country's GDP in healthcare expenses each year.