Study reveals decline in number of smokers after tax hike

WEB DESK: In a bid to tackle the adverse effects of smoking on public health and bolster revenue, the government’s recent decision to hike taxes on cigarettes has yielded promising results, significantly reducing tobacco consumption across the country.

According to a study conducted by ‘Capital Calling’ in major cities, including Islamabad, Rawalpindi, Lahore, and Peshawar, the increase in cigarette prices prompted one in every 94 smokers to quit.

The study’s findings, disclosed in a press release on Wednesday, highlight the positive impact of the government’s initiative.

The objective of the tax hike was to boost revenue from Rs148 billion to Rs200 billion in the current fiscal year.

The Federal Board of Revenue implemented a substantial increase in duty on tier-1 cigarettes, raising it from Rs130 rupees to Rs330. This move resulted in a significant net increase of 154 per cent in cigarette prices.

Surveyed smokers emphasised the financial burden of purchasing cigarettes, leading many to reprioritize their expenses.

Individuals now choose to allocate funds towards essential needs such as food and education for their children rather than smoking.

The survey established a direct correlation between higher cigarette taxes and reduced consumption.

Notably, the cigarette industry was causing an annual loss of approximately Rs620 billion due to diseases like cancer, chronic respiratory ailments, and cardiovascular issues, contributing to 337,500 deaths each year.

Analysts predict a further decline in cigarette sales across Pakistan in the coming months if the government maintains the current tax structure.

Dr Aman Khan, director of the Islamabad-based “Waseela Foundation,” endorsed the think tank’s findings, affirming that the government’s decision to raise taxes serves as a strategic approach to address both public health concerns and revenue deficits.

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