Pakistan sees remarkable reduction in cigarette consumption

WEB DESK: A recent survey conducted by Islamabad’s Centre for Research and Dialogue (CRD) has shed light on a significant 18 per cent decline in smoking rates across Pakistan. This decline has been closely associated with the escalating prices of cigarettes.

The findings of the survey underscore the effectiveness of imposing higher taxes on tobacco products, a strategy endorsed by the World Health Organization (WHO). According to the survey report, which was recently made public, there has been a noticeable reduction in cigarette consumption, with 15 per cent of participants attributing their decreased smoking habits to the surge in prices.

This decrease equates to an estimated reduction of 11 billion cigarettes smoked annually. However, it’s crucial to recognise that Pakistan’s overall cigarette consumption, which ranges between 72 to 80 billion sticks per year, encompasses both legally taxed, smuggled, and untaxed products.

Despite the positive trend revealed by the survey, Pakistan continues to offer some of the most affordable cigarettes globally. This disparity underscores the necessity for further increments in tobacco taxes to effectively combat smoking habits.

The report highlights the government’s pivotal role in this regard, noting that the decision to elevate Federal Excise Duty (FED) rates by 146 per cent for cheaper brands and 154 per cent for premium brands in 2023 has significantly contributed to the observed decline.

Nonetheless, even with these adjustments, cigarettes in Pakistan remain considerably cheaper compared to neighboring countries in South Asia.

Support for heightened taxation on tobacco products extends beyond national borders, with both the World Bank and the International Monetary Fund (IMF) advocating for robust tax measures.

Their endorsement stems from recognising the direct correlation between increased prices and reduced consumption, underscoring the importance of sustained efforts to deter smoking habits through fiscal policies.

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