Islamabad: The Social Policy and Development Centre (SPDC) in collaboration with Society for the Protection of the Rights of the Child (SPARC) launched the Pakistan Tobacco Fact Sheet to highlight the cigarette taxes contribution for Federal Budget 2026-27 to protect public health and strengthen fiscal outcomes.
Presenting the key findings, Muhammad Asif Iqbal, Managing Director of SPDC, highlighted that tobacco use remains a major public health crisis in Pakistan, causing over 192,000 deaths annually. He noted that the economic health burden of smoking related diseases is estimated at Rs 1,835 billion in 2024-25, far exceeding the Rs 266 billion collected in tobacco taxes. 'Pakistan continues to have some of the lowest cigarette prices in the region, largely due to stagnant tax rates and declining real taxation,' he said.
Muhammad Asif Iqbal further stated that federal excise duty (FED) rates on cigarettes have not increased since February 2023, resulting in reduced tax share in retail prices and increased affordability, particularly of low cost brands. SPDC recommends increasing FED by Rs 35 per pack on economy brands and Rs 21 on premium brands, alongside a gradual move toward a unified tax tier structure.
Nelson Azeem, Parliamentary Secretary of the Ministry of National Health Services Regulations and Coordination (NHSR and C), stressed the serious consequences of tobacco use on public health and its widespread impact on society. "The health of our future generations is at stake, and this is a challenge we cannot afford to overlook," he stated. "The repercussions of inaction are severe, not just in terms of health, but also in terms of the economic and social costs involved.
Speaking at the event, Dr. Shazia Sobia Aslam Soomro, Member of the National Assembly stressed the importance of tobacco taxation as a public health measure. She highlighted that stronger fiscal policies can play a critical role in reducing preventable diseases and easing pressure on Pakistan's healthcare system. 'Increasing tobacco taxes is not just a revenue measure; it is a vital investment in the health and future of our population,' she stated.
Mohammad Riaz Fatyana, Member of the National Assembly strongly urged the government to make this tax increase a priority in the 2026-27 budget. He emphasized that raising the FED on cigarettes will not only support economic growth but also save lives by reducing tobacco use. By implementing this measure, Pakistan can take a significant step towards a healthier and more prosperous future.
Dr. Khalil Ahmad, Program Manager of SPARC, emphasized the alarming rise in tobacco use among youth, noting that lower priced cigarettes disproportionately attract young and low income smokers. 'Higher taxes are one of the most effective tools to reduce youth initiation. Global evidence shows that price increases significantly discourage smoking among young people,' he said.
According to SPDC estimates, the proposed FED tax increase can generate an additional Rs 51 billion in revenue, prevent 369,000 youth from initiating smoking, and 271,000 fewer smokers. The speakers also urged that recent price hike in oil prices due to the overall regional situation has severely impacted the general public and overall economy, it will be more beneficial to focus on increasing the cigarette taxation measures instead of increasing the prices other basic necessity items. They called on policymakers to take bold action in the upcoming budget to ensure tobacco taxation supports public health goals and aligns with international best practices.