Raising Tobacco Tax Rates to Promote Public Health and Increase Revenue: Policy Options for Budget 2022-23

This Fact Sheet was developed by tobacco control partners from Pakistan: Social Policy and Development Centre (SPDC) in collaboration with World Health Organization- Pakistan, Campaign for Tobacco Free Kids, The Union, and Vital Strategies. The fact sheet discusses the large economic and public health burden of tobacco in Pakistan, as well as the current tobacco tax structure. Tobacco taxes in the country are low, with an average excise tax rate of only around 45%. Over time, cigarettes are becoming more affordable due to stagnant tobacco taxes that are not keeping pace with inflation and economic growth. Simulating a 30% increase in the excise tax rate, the researchers find that this would reduce the number of smokers by 200,000 and increase excise tax revenue by at least 25% (PKR 27.4 billion).