ISLAMABAD: A recent survey by the Pakistan-based think tank Center for Research and Dialogue (CRD) has unveiled that 18 percent of smokers have chosen to quit smoking after a notable increase in cigarette prices.
Maryam Gul Tahir, Director of CRD, emphasized, “The survey results clearly indicate that tax hikes offer mutual benefits for public health and government revenue.”
These findings emphasize the efficacy of implementing high tobacco taxation, a strategy endorsed by the World Health Organization (WHO), in combating tobacco use.
Recent governmental decisions reflect a pivot towards prioritizing public health over industry interests. One such decision was the long-awaited increase in Federal Excise Duty (FED) rates. This policy adjustment not only promotes public health but also acts as a fiscal tool to mitigate the economic strain caused by smoking-related healthcare expenses.
In February of last year, the Finance (Supplementary) Act of 2023 witnessed a substantial surge in FED rates, skyrocketing by 146 percent for economy brands and 154 percent for premium brands, a notable departure from past policies.
This strategic move has already yielded tangible results, evident in the evident decline in cigarette consumption. The survey findings not only highlight this decrease but also indicate a shift in behavior among smokers.
