Aurat Foundation Urges Tax Hike on Tobacco Products to Curb Smoking Rates

Islamabad: A delegation from the Aurat Foundation met with Syed Mustafa Kamal, Federal Minister for National Health Services, Regulations, and Coordination, urging a significant increase in excise taxes on tobacco and nicotine products in the next budget. The foundation highlighted the alarming rise in smoking prevalence in Pakistan and the adverse effects of tobacco advertising on youth, particularly young girls.

Ms. Mumtaz Mughal, Director Program of the Aurat Foundation, pointed out that Pakistan ranks 54th out of 84 countries in terms of tobacco smoking prevalence. Recent data indicates that approximately 31.9 million adults aged 15 and above, or 19.7% of the adult population, are current tobacco users.

Mr. Safdar Raza, Team Leader, referenced a study showing that tobacco use in Pakistan is linked to over 160,000 deaths annually. The study also estimates that smoking-related diseases and deaths cost the country 1.6% of its GDP each year. Without a tax increase, an additional 490,000 individuals are expected to start smoking by 2025-26.

The study found that cigarettes have become more affordable due to the freeze on tobacco tax rates since February 2023. An excise tax increase of Rs. 39 per pack could reduce the number of smokers by 263,000, decrease cigarette consumption by 6.9%, and generate an additional Rs. 67.4 billion in government revenue.

Ms. Mughal emphasized that a substantial tax increase on tobacco and nicotine products would deter tobacco use and improve public health outcomes while strengthening national fiscal revenues.