Cigarettes likely to get more expensive in Budget 2024-25

ISLAMABAD: The Federal government is expected to impose additional taxes on cigarettes in the 2024-25 budget.

Despite being a signatory to the FCTC since 2005, Pakistan continues to have some of the lowest tobacco product prices globally, contributing to a significant public health burden. Over 31.9 million adults aged 15 and above, or nearly 19.7% of the adult population, are current tobacco users, straining the healthcare system.

According to ARY News, the National Institute of Health (NIH) has begun receiving recommendations from stakeholders about increasing cigarette prices. NGOs have proposed a 26.6% increase in the Federal Excise Duty (FED) on tobacco.

The Tobacco Control Cell has also finalized its recommendations to raise cigarette prices in the 2025 budget. The Ministry of Health will review these recommendations and forward them to the Ministry of Finance this week.

The report said that there might be a 15% to 19% increase in FED on tobacco in the 2025 budget. Currently, the Pakistani government imposes a FED of Rs120 per cigarette pack, while local cigarettes are sold at Rs90 per pack.

Last year, multinational cigarette manufacturers paid Rs173 billion in taxes, whereas local manufacturers evaded Rs240 billion in taxes.