In Islamabad, the Social Policy and Development Centre (SPDC) and the Society for the Protection of the Rights of the Child (SPARC) presented a Pakistan Tobacco Fact Sheet calling for higher cigarette taxes in the Federal Budget 2026-27 to protect public health and improve fiscal outcomes. SPDC said tobacco use causes more than 192,000 deaths annually in Pakistan and estimated the economic burden of smoking-related disease at Rs 1,835 billion for 2024-25, far above the Rs 266 billion collected in tobacco taxes.
Muhammad Asif Iqbal, Managing Director of SPDC, noted that cigarette prices in Pakistan remain among the lowest in the region, driven by stagnant tax rates and declining real taxation. He warned that federal excise duty rates on cigarettes have not been increased since February 2023, reducing the tax share in retail prices and increasing affordability, particularly for low-cost brands.
To address these trends SPDC recommends an increase in FED by Rs 35 per pack for economy brands and Rs 21 for premium brands, along with a gradual move toward a unified tax tier structure. SPDC estimates the proposed increase in cigarette taxes could generate an additional Rs 51 billion in revenue while preventing an estimated 369,000 youth from initiating smoking and producing 271,000 fewer smokers overall.
Parliamentary Secretary Nelson Azeem stressed the broader consequences of tobacco use for families and the national health system, saying ‘the health of our future generations is at stake’ and urging decisive budget action. Member of the National Assembly Dr Shazia Sobia Aslam Soomro highlighted tobacco taxation as a public health measure that can reduce preventable disease and ease pressure on Pakistan’s healthcare infrastructure.
MNA Mohammad Riaz Fatyana urged the government to prioritise the proposed FED increases in the 2026-27 budget, arguing that stronger cigarette taxes will both support economic stability and save lives by reducing tobacco consumption. Dr Khalil Ahmad of SPARC emphasised the impact of low-priced cigarettes on young and low-income smokers, noting that higher prices are among the most effective tools to deter youth initiation.
Speakers also pointed out that recent oil price pressures have strained household budgets and the wider economy, and contended that focusing revenue measures on cigarette taxation is preferable to raising the prices of basic necessities. Policymakers were urged to adopt bolder cigarette taxes in the upcoming budget to align fiscal policy with public health goals and international best practices.
