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Tobacco costs Pakistan 164 000 lives and PKR 700B yearly; taxation can save lives

Tobacco Costs Pakistan 164 000 Lives And Pkr 700b Yearly Taxation Can Save Lives
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Dr.Luo Dapeng
WHO Representative in Pakistan

Every year, close to 164 000 people die due to tobacco use in Pakistan.

This means 450 deaths per day, more than 3100 deaths per week and over 13 600 deaths per month.

In addition to the devastating loss of lives, the latest research indicates that the annual economic and health cost of tobacco in Pakistan amounts to around PKR 700 billion (around US$2.5 billion).

However, the tobacco industry’s total tax contribution to Pakistan – around PKR 298 billion in 2024 – does not even amount to half of the economic losses triggered by tobacco consumption in the country.

This loss of lives and the economic consequences of tobacco are preventable if people reduce consumption and quit smoking.

To achieve this, increasing taxation is one of the key policy measures governments can use for tobacco control.

Taxation not only saves lives but also reduces negative economic impacts and increases tax revenue.

Research has proven that taxing conventional tobacco and other novel tobacco products reduces overconsumption.

Additionally, it increases tax revenues that can be allocated to finance health and development priorities.

Pakistan’s already overstretched health care systems can also achieve greater viability by reducing the burden of tobacco-related diseases.

The negative impacts of tobacco are jeopardizing Pakistan’s commendable efforts to advance the 2030 Agenda and all its Sustainable Development Goals (SDGs).

Sustainable development needs healthy workers, healthy mothers, healthy fathers, healthy children, and healthy communities.

In Pakistan, tobacco taxation has proved to be effective.

In 2023, a tax increase on tobacco products led to reduced consumption and increased revenues.

Around 26.3% of smokers cut down on cigarette consumption, which declined by 19.2%.

In parallel, revenue collection from the Federal Excise Duty (FED) on cigarettes increased by 66% — from PKR 142 billion in 2022-23 to PKR 237 billion in 2023-24.

Pakistan ratified the World Health Organization Framework Convention on Tobacco Control (WHO FCTC) in 2004.

In this regard, WHO is continuously providing technical support to the Ministry of National Health Services Regulations & Coordination (MNHSRC) and the Federal Board of Revenue (FBR) in the areas of tobacco tax policy and track-and-trace implementation.

In Pakistan, FED rates on cigarettes have not increased since February 2023 – making them more affordable – and taxation levels remain below WHO’s recommended level of 75% of the retail price.

This presents an opportunity to strengthen control measures.

WHO stands with the Government of Pakistan to work together in reducing tobacco use and saving lives.

 

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