Higher Tobacco Taxes Can Save Thousands of Lives yearly

Islamabad:With over 160,000 Pakistanis dying each year due to smoking-related illnesses, the Society for the Protection of the Rights of the Child (SPARC) has urged the government to implement stronger tobacco taxation policies. Increasing taxes on cigarettes is a globally recognized strategy to curb tobacco consumption, particularly among youth and children, while also generating essential revenue for public welfare.
Dr. Khalil Ahmad, Program Manager at SPARC, emphasized that taxation is not just a fiscal policy but a lifesaving public health intervention. He stated:
“Pakistan must take immediate action to address the devastating health and economic consequences of tobacco use. Increasing cigarette prices through taxation is one of the most effective ways to discourage smoking while generating much-needed funds for healthcare, education, and child welfare.”
Dr. Ahmad highlighted that the last significant FED hike in 2023 resulted in a 19.2% reduction in cigarette consumption while boosting tax revenue from Rs. 142 billion in 2022-23 to Rs. 237 billion in 2023-24. However, the absence of further tax increases has made cigarettes more affordable, reversing the positive impact of previous measures.
“The evidence is clear—higher tobacco taxes lead to fewer smokers and more revenue for public services. Many countries have successfully used tax policies to reduce smoking and reinvest these funds into healthcare and anti-smoking initiatives. Pakistan must follow suit to protect public health and economic stability,” Dr. Ahmad added.
Tobacco use remains one of the leading causes of preventable death in Pakistan, with over 31.6 million adult tobacco users and 17.3 million smokers nationwide. The economic burden of smoking is equally alarming, with tobacco-related healthcare costs accounting for 1.6% of the country’s GDP, placing an enormous strain on the healthcare system.
Additionally, Pakistan is a signatory to the World Health Organization’s Framework Convention on Tobacco Control (WHO FCTC), which recognizes tax and price measures as effective tools to reduce tobacco consumption. Article 6 of the WHO FCTC specifically calls on countries to implement tax policies that discourage smoking while generating government revenue. Many nations have successfully implemented such measures, using tobacco tax revenues to fund healthcare initiatives and anti-smoking campaigns.
SPARC strongly urges the government to prioritize increased tobacco taxation in the 2025-26 budget. Ensuring higher cigarette prices will not only contribute to economic growth but also save thousands of lives by discouraging tobacco use. By adopting this measure, Pakistan can move toward a healthier and more prosperous future.