Daily Times

The Human Development Foundation (HDF) convened a media briefing today to address the critical issue of tobacco taxation in Pakistan. Mr. Malik Imran Ahmad, Tobacco Control Activist, presented a compelling analysis of the current national-level tobacco control policies and emphasized the need for significant improvement. Tobacco use is a leading cause of preventable death in Pakistan. The economic burden is equally significant, with smoking-related illnesses and deaths costing Pakistan 1.4% of its GDP each year. Mr. Malik highlighted the staggering economic toll of tobacco consumption. Referring to a World Bank report, he said that there was ample room to increase tax on tobacco products. “The government can generate additional Rs. 65 billion from the industry by increasing the tax up to 26%,” he stated. Mr. Malik presented a data-driven proposal for a 26.6% increase in the Federal Excise Duty (FED) on tobacco products. This strategic approach has the potential to yield a “triple win” for Pakistan: a reduction in the number of smokers by 517,000, a 12.1% increase in tax revenue for the government and a 19.8% recovery of healthcare costs associated with tobacco use.