ISLAMABAD: Due to the government’s decision to increase taxes on cigarettes to reduce its negative impact on public health and enhance revenue generation, tobacco consumption in Pakistan has reduced significantly, a study revealed.
A study conducted by ‘Capital Calling’ in major cities including Islamabad, Lahore, Rawalpindi, and Peshawar revealed that 1 in every 94 smokers had quit smoking after rates of cigarettes increased, according to APP.
The decision was aimed at increasing the revenue to 200 billion rupees from 148 billion rupees in the current fiscal year, and the Federal Board of Revenue (FBR) elevated duty on tier-One cigarettes from Rs130 rupees to Rs330, resulting in a significant net increase of 154% in cigarette prices.
Purchasing Cigarettes Becomes Financially Burdensome
Smokers told the surveyors that purchasing cigarettes had become financially burdensome, leading them to prioritize spending on essential needs like food and the education of their kids instead of smoking.
The survey found a positive relationship between higher taxes on the commodity and its lower consumption. Needless to say, the cigarette industry was causing a staggering loss of approximately 620 billion rupees annually in terms of diseases, including cardiovascular disease, cancer, and chronic respiratory diseases, besides 337,500 deaths each year.
The evidence suggests the sales of cigarettes would further drop in the coming months across the country if the government maintains the taxes.
