Proposal to Increase Federal Excise Duty on Tobacco Products by 37% for Health and Revenue Gains

Generate an additional revenue of Rs 37.7 billion, and encourage 757,000 people to quit smoking

The Social Policy Development Centre (SPDC) has recommended a 37% increase in the Federal Excise Duty (FED) on tobacco products to bolster public health outcomes and revenue collection. According to the SPDC’s policy paper titled “Recovering Healthcare Costs and Saving Lives,” aligning with the World Health Organization (WHO) and Campaign for Tobacco-Free Kids (CTFK) recommendations, this move could potentially save 265,000 lives, generate an additional revenue of Rs 37.7 billion, and encourage 757,000 people to quit smoking.

Pakistan-US Alumni Network-Two-Day Conference on ‘Social Entrepreneurship in Pakistan’ concludes

Pakistan currently operates a two-tiered system of FED on cigarettes, with FED rates increased significantly in 2022-23. The current FED share in retail prices stands at 48% and 68% for low and high tiers, respectively. The SPDC emphasized the need to maintain this trend and warned of negative impacts on revenue and public health efforts if FED rates were not increased. The proposal aims to bring the tax share of retail prices towards 70%, in line with international standards.

Over 22 Million Unmarried Youth in Pakistan

This proposal comes as the government prepares to outline its budgetary agenda, highlighting a commitment to prioritize public health and economic prosperity through targeted tobacco tax reforms. If implemented, the increase in FED could significantly reduce smoking rates, improve public health, and boost revenue for the country.

• Pakistanis Spend $540 Million on Tea Imports Amidst Economic Struggles
• Grade 17 Official Fails to Spell ‘Math’ in Court Despite Claiming BA in Mathematics
• Prices of Ghee and Cooking Oil Drop Further
• Muzz Revolutionizes Pakistani Marriages with a Focus on Individual Choice
• Saudi Arabia Hosts Historic Swimsuit Fashion Show, Signaling Major Cultural Shift