Because the government increased tobacco taxes Reduces smoking significantly.
Pakistan has seen a significant decrease in cigarette consumption. This comes after the government made bold decisions to increase taxes and address public health and revenue generation challenges.
A study conducted a few months ago by Capital Calling, a network of academic researchers and experts. It has been proven correct. The study found that one in every 94 smokers quit after the price increase.
The government’s decision to increase taxes is an important strategy to address public health concerns and revenue deficits, the report said.
After continuous lobbying efforts by anti-tobacco activists and social activists, The government finally agreed to increase taxes.
It should be noted that the FBR has increased the tax on first class cigarettes from Rs 130 to Rs 330, resulting in a significant increase of 154%.
The objective of this decision is to increase revenue from Rs 148 billion to Rs 200 billion in the current financial year.
according to details The survey was conducted in major cities such as Islamabad, Rawalpindi, Lahore and Peshawar.
The voices of smokers surveyed echoed the general sentiment that purchasing cigarettes has become a financial burden. This makes them prioritize spending on essentials like food and their children’s education.
The survey results are a strong argument for higher taxes. The tobacco industry costs Rs 620 billion per year in diseases. including cancer Chronic respiratory disease and heart disease, in addition to the 337,500 deaths per year
Pakistan has lost 567 billion rupees in potential revenue in the last seven years. Because of the influence of cigarette companies that try to lobby for tax cuts.
Even though there are losses in various aspects including public health and income But widespread propaganda is an obstacle to higher taxes.
Multinational tobacco companies have expressed concern over the spread of illicit and illegal cigarettes in the Pakistani market. It said their share was nearly 40 percent.
However, on-the-ground surveys and interviews have refuted these claims. and revealed that the actual share of illegal and illicit cigarettes does not exceed 18 percent. This figure also includes smuggled brands from several multinational companies that have expressed concern.
Evidence shows that if the government increases FED in the tobacco sector further. Cigarette sales across Pakistan will also decline further in the coming months.