A proposal has been put forward to significantly increase the Federal Excise Duty (FED) on cigarettes in Pakistan upcoming federal budget for 2026–27, aiming to boost government revenue and discourage smoking, especially among young people.
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The recommendation has been submitted by the non-governmental organisation Society for the Protection of the Rights of the Child, also known as SPARC, which works on child rights and public health advocacy.
According to the proposal, increasing taxes on cigarettes could generate up to Rs 51 billion in additional revenue for the national treasury. The group has suggested raising taxes by Rs 35 per pack for low-cost cigarette brands and Rs 21 per pack for premium brands.
SPARC has also urged the government to gradually move toward a uniform tax system for tobacco products. The aim is to reduce price differences between cigarette brands, making tobacco less accessible and less affordable, particularly for younger consumers.
Public health experts supporting the proposal argue that higher taxation is one of the most effective tools for reducing tobacco consumption. They believe the policy could have a dual benefit: increasing government revenue while also improving public health outcomes.
Estimates cited by experts suggest that the proposed tax increase could prevent around 370,000 young people from starting smoking. In addition, it could encourage approximately 270,000 existing smokers to quit or reduce tobacco use.
The recommendations come at a time when Pakistan continues to face significant health and economic burdens linked to smoking-related illnesses, including cardiovascular diseases and cancer.
Health advocates say that stronger taxation policies, combined with awareness campaigns and enforcement measures, could significantly reduce tobacco use across the country.
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The proposal will now be considered as part of the broader budget-making process, where the government is expected to evaluate fiscal, health, and industrial impacts before finalising tax policy decisions for the upcoming financial year.