Economics of Tobacco Taxation and Consumption in Pakistan

Tobacco taxation is a major concern of health and tax policies in Pakistan. Although the tobacco industry thrives on 22 million active tobacco consumers and 100,000 premature deaths in Pakistan, it is still attractive because of a tax tag worth USD 1 billion. Nevertheless, tobacco taxation has largely been an under-researched area; thus, evidence-based policy making is lacking. This report presents an economic analysis of tobacco taxation and consumption in Pakistan and provides three distinct but interconnected analyses based on research conducted by the Pakistan Institute of Development Economics (PIDE).

Two policy briefs, Tobacco Use in Pakistan and Higher Tobacco Taxes in Pakistan Could Increase Revenue and Improve Public Health, were published based on this report.