A non-governmental organisation working for child rights, Society for the Protection of the Rights of the Child, has proposed a significant increase in Federal Excise Duty (FED) on cigarettes in Pakistan’s federal budget for fiscal year 2026–27.
According to the proposal, the move could generate up to Rs51 billion in additional revenue for the national exchequer.
The recommendations include increasing the price of lower-cost cigarette packs by at least Rs35 and premium cigarette packs by Rs21.
SPARC also called for a gradual shift towards a uniform taxation system in order to reduce price disparities and limit the accessibility of cigarettes.
Experts associated with the proposal said the measures would not only increase government revenues but could also help prevent nearly 370,000 young people from starting smoking.
They further stated that around 270,000 individuals may be encouraged to quit smoking as a result of the proposed tax measures.
