FED on Cigarettes Pakistan: Rs51 Billion Revenue at Stake

Islamabad – (Web Desk) – A health organization is urging Pakistan to raise the FED on cigarettes Pakistan to generate up to Rs51 billion in extra revenue and reduce smoking-related deaths.

SPARK Program Manager Dr. Khalil Ahmed says global evidence clearly shows that higher tobacco taxes reduce smoking. He stressed that Pakistan needs stronger tax measures to protect public health and ease fiscal pressure.

Pakistan has around 31 million adult tobacco users. Every year, tobacco-related diseases kill more than 192,000 people. That equals roughly 526 deaths every single day from heart disease, cancer, and other smoking illnesses.

The Federal Excise Duty on cigarettes has not changed since February 2023. Because of this freeze, cigarettes have become more affordable in real terms, especially cheaper brands. Meanwhile, fuel and food prices have kept rising, squeezing household budgets across the country.

The financial cost of tobacco use is massive. Health spending on smoking-related diseases stands at Rs1,835 billion, equal to 1.6 percent of GDP. By comparison, tobacco tax revenue is only Rs266 billion. That means Pakistan spends Rs7 treating tobacco diseases for every Rs1 collected in tax.

SPARK has proposed raising excise duty by Rs35 per pack on low-cost brands and Rs21 per pack on premium brands. The goal is to move toward a uniform tax system over time.

According to SPARK’s analysis, these changes could stop around 370,000 young people from starting smoking and encourage 270,000 existing smokers to quit. The proposal aligns fully with WHO guidelines under the FCTC and MPOWER framework.