The Social Policy and Development Centre and the Society for the Protection of the Rights of the Child launched the Pakistan Tobacco Fact Sheet urging an increase in cigarette taxes in the Federal Budget 2026-27 to protect public health and strengthen fiscal outcomes.
Muhammad Asif Iqbal, Managing Director of SPDC, highlighted that tobacco use remains a major public health crisis in Pakistan, causing over 192,000 deaths each year. He warned that the economic health burden of smoking-related diseases reached Rs 1,835 billion in 2024-25 while tobacco taxes yielded only Rs 266 billion, a gap that underscores the need for stronger cigarette taxes and fiscal policy.
Mr Iqbal noted that federal excise duty rates on cigarettes have not been increased since February 2023, which has reduced the tax share of retail prices and made low-cost brands increasingly affordable. SPDC recommends an immediate FED increase of Rs 35 per pack on economy brands and Rs 21 on premium brands, combined with a gradual move toward a unified tax tier structure to simplify administration and raise prices of the cheapest products.
Nelson Azeem, Parliamentary Secretary of the Ministry of National Health Services Regulations and Coordination, stressed the severe consequences of inaction and warned that the health of future generations is at stake if cigarette taxes are not strengthened as part of the upcoming budget.
Dr Shazia Sobia Aslam Soomro, Member of the National Assembly, emphasised that stronger fiscal measures on tobacco are not only revenue tools but essential public health investments that can reduce preventable disease and ease pressure on Pakistan’s healthcare system.
Mohammad Riaz Fatyana, Member of the National Assembly, urged the government to prioritise the proposed tax increase in the 2026-27 budget, arguing that raising the FED on cigarettes will support economic growth while saving lives by reducing tobacco use.
Dr Khalil Ahmad, Program Manager of SPARC, warned of an alarming rise in tobacco use among youth and noted that lower priced cigarettes disproportionately attract young and low-income smokers. He said global evidence shows price increases are among the most effective tools to deter youth initiation, making cigarette taxes a critical prevention strategy.
According to SPDC estimates, the suggested FED rise could generate an additional Rs 51 billion in revenue, prevent 369,000 youth from starting to smoke and result in 271,000 fewer smokers. Speakers also argued that with recent oil price shocks increasing pressure on households, policymakers should focus on strengthening cigarette taxation rather than raising prices on other basic necessities. They called on budget planners to adopt bold cigarette tax reforms that align with international best practices and public health goals.
