Recovering Healthcare Costs and Saving Lives: An Urgent Call for a Tobacco Tax Increase in the Budget 2024-25

This Fact Sheet was developed by Social Policy and Development Centre (SPDC) in Pakistan in collaboration with World Health Organization, Vital Strategies, and The Union. The fact sheet discusses the large economic and public health burden of tobacco in Pakistan and simulates the impact that raising the tobacco excise taxes in the 2024-25 budget. Following significant increases in the excise tax in 2022-23 which effectively increased the excise tax share of price, a lack of tax increases in 2023-24 halted progress. If the excise tax rate remains constant in 2024-25, the health cost recovery would decrease from 17.8% to 15.6%. On the other hand, raising the excise tax 37% would result in 757,000 fewer smokers and increase tax revenues 12.1%, while maintaining the 17.8% health recovery level. The fact sheet concludes with recommendations for policy makers to continue to raise excise taxes and transition to a uniform excise tax structure for all cigarettes.