According to a think tank survey, one out of every 94 smokers stopped smoking after cigarette prices increased.
Dr. Aman Khan, director of an Islamabad-based NGO, agreed with the think tank’s conclusions, saying, “The government’s decision to increase taxes emerged as a strategy to address both public health concerns and revenue deficits.”
Following relentless lobbying by a large number of anti-tobacco and health groups, the government agreed to hike taxes. In a historic move, the FBR raised duty on tier-1 cigarettes from Rs130 to Rs330, resulting in a net rise of 154% in cigarette costs.
The decision intended to increase income to Rs200 billion, up from Rs148 billion in the current fiscal year.
The think tank conducted the survey in key cities like Islamabad, Rawalpindi, Lahore, and Peshawar.
Smokers told the surveyors that purchasing cigarettes had become financially difficult, prompting them to prioritize spending on necessities such as food and their children’s education above smoking. The survey discovered a favorable association between higher cigarette taxes and lower consumption.
Needless to add, the tobacco industry was responsible for a startling Rs620 billion in annual illness losses, including cancer, chronic respiratory disorders, and cardiovascular disease, as well as 337,500 deaths.
Over the last seven years, Pakistan has wasted a stunning Rs567 billion in potential revenue as a result of the influence of two global tobacco corporations campaigning for lower taxes.It has also been reported that the actual market share of illicit and illegitimate cigarettes is no more than 18%, which contradicts international cigarette firms’ inflated figure of 40%. The research implies that cigarette sales in Pakistan will fall much further in the coming months if the government maintains taxes.
