Tobacco use continues to be one of the world’s most significant public health challenges and the leading cause of preventable deaths. With 1.3 billion tobacco users globally, the harmful impact of tobacco is undeniable. Tobacco kills half of its users, with a life lost every four seconds.
In Pakistan, the situation is particularly dire. The World Health Organization (WHO) estimates that over 23.9 million people in Pakistan use tobacco, and each year, approximately 166,000 die from tobacco-related diseases. Tobacco also has a severe economic impact, as a study by the Pakistan Institute of Development Economics (PIDE) shows that tobacco consumption costs the country around Rs615 billion, or 1.6% of GDP, due to healthcare expenses. This staggering figure highlights the urgent need for tobacco tax reforms that can reduce tobacco consumption, save lives, and benefit the economy.
Pakistan faces an alarming situation, particularly with its large youthful population. Every day, around 1,200 children between the ages of six and 15 start smoking, mainly due to the easy availability of tobacco products. This poses a huge risk to public health and underscores the need for stricter regulations and policies. The World Bank recommends that tobacco taxes should be raised by at least 30% annually to curb consumption and reduce its harmful effects.
The tobacco industry has long used deceptive tactics to promote its products, particularly targeting children and youth. Through advertising campaigns, sponsorships, and influencer marketing, the industry has misled younger generations, making smoking appear glamorous and socially acceptable. In the past, tobacco companies have even paid movie studios and celebrities to feature their products, further embedding the harmful habits in the minds of the public.
One of the key factors contributing to tobacco use in Pakistan is the affordable availability of cigarettes. In comparison to other South Asian countries, cigarettes in Pakistan are significantly cheaper, making it easier for the youth to access them. The government must act swiftly to address this issue by imposing a substantial tax on tobacco products. This would not only boost government revenue but also reduce the affordability of cigarettes, particularly for younger consumers.
The current tax structure is insufficient, as it allows the tobacco industry to sell cigarettes at low prices. Experts recommend increasing the tax rate by four to five times its current value, as a first step toward reducing tobacco consumption. The Federal Board of Revenue (FBR) should raise excise taxes to meet the WHO’s recommendation of taxing tobacco products at 70% of their retail price.
In addition, the FBR should implement a single-tier taxation system to simplify the process and minimize tax evasion by the tobacco industry. This reform would make tobacco products less affordable and reduce the chances of young people becoming lifelong smokers.
The tax rate on cigarettes has remained unchanged for the past five years, making it clear that the current policy is outdated. Tobacco consumption’s economic and health costs far exceed Pakistan’s total annual public health spending. By adopting comprehensive tobacco tax reforms, Pakistan could reduce the number of smokers by 219,000, lower smoking rates by 3.8% among adults, reduce smoking intensity by 6.4%, and generate an additional Rs19 billion in tax revenue.
It is time for policymakers to act. Raising taxes on tobacco products is not just a measure to protect public health, but a strategic move to secure a healthier, more prosperous future for the nation.
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