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19.9 Percent Use Tobacco, Increase in Taxes on Tobacco Demanded

A delegation from the Aurat Foundation met with Syed Mustafa Kamal, the Federal Minister for National Health Services, Regulations, and Coordination, to advocate for a significant increase in excise taxes on tobacco and nicotine products in the forthcoming budget.

The Foundation emphasized the potential health and economic benefits of such a measure. Ms. Mumtaz Mughal, Director Program of Aurat Foundation, highlighted Pakistan’s troubling rank of 54th out of 84 countries in tobacco smoking prevalence, with tobacco advertising disproportionately impacting youth, especially young girls. Recent statistics indicate that 31.9 million adults, or 19.7% of the adult population, are current tobacco users.

Mr. Safdar Raza, Team Leader, detailed findings from a recent study by a reputable organization, which shows that 19.9% of adults use tobacco, leading to over 160,000 annual deaths and costing 1.6% of the GDP due to smoking-related diseases and deaths. He warned that without a tax increase, 490,000 more individuals could begin smoking by 2025-26.

Raza pointed out that cigarettes have become more affordable since the tax rate freeze in February 2023. He suggested that a Rs. 39 excise tax increase 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 concluded by stating that a substantial tax increase on tobacco and nicotine products would serve as a significant deterrent to tobacco use, improve public health outcomes, and bolster national fiscal revenues.

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