Govt urged to raise cigarette taxes by up to 70 per cent

WEB DESK: Malik Imran Ahmed, the country head of The Campaign for Tobacco-Free Kids (CTFK), has urged the government to confront the escalating issue of widespread tobacco consumption among young people by implementing a significant increase in tobacco taxes, aiming for up to 70 per cent of the retail price.

This benchmark aligns with the guidelines set forth by the World Health Organization (WHO).

The proposition arises amidst the government’s deliberations on bolstering revenue generation for the upcoming budget, coinciding with negotiations with the International Monetary Fund (IMF) for a substantial, long-term bailout program.

Currently, Pakistan operates under a two-tiered system of Federal Excise Duty (FED) on cigarettes, with notable adjustments made in the fiscal year 2022-23.

Presently, the FED accounts for 48 per cent and 68 per cent of retail prices for low and high-tier cigarettes, respectively.

“Seizing this opportune moment to build upon our progress and diminish the prevalence of smoking is crucial,” asserted Malik Imran Ahmed.

With over 60 per cent of the population comprised of youths, safeguarding them from the detrimental effects of tobacco use is paramount.

Data reveals that approximately 19.1 per cent of adults (aged 15 and above) presently engage in tobacco consumption in various forms, encompassing 31.8 per cent of men and 5.8 per cent of women.

Ahmed advocates for a substantial 37 per cent increase in tobacco taxes, considering prevailing market dynamics, the benefits accrued from previous tax adjustments, and the IMF’s recommendation to tax non-essential items, including cigarettes.

Revenue collection from July 2023 to January 2024 has already surpassed Rs122 billion, with expectations of exceeding Rs200 billion by year-end.

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