PAKISTAN - Tobacco Fact Sheet 2024-25 - Recovering Healthcare Costs and Saving Lives:

PAKISTAN Tobacco Fact Sheet 2024-25 Re covering Healthcare Costs and Saving Lives: An Urgent Call for a Tobacco Tax Increase in the Budget 2024-25 DEADLY BURDEN AND HIGH COSTS A 37% FED hike triggers a ▪ 31.6 million adults (age 15 years and above) or triple win: 757,000 fewer about 19.9% of adults currently use tobacco in Pakistan.1 smokers, 12.1% more tax ▪ Tobacco use is associated with more th. [...] ▪ After a three-year gap, the FED increased ▪ Not only did the FED increase revenue, but the significantly in 2022-23, reforms are also expected to generate an pushing the FED share additional PKR 60 billion in GST from cigarettes in retail price to 48% for 2023-24. [...] 41.4 58.2 42.0 59.5 47.7 68.3 RAISING TAXES SAVES LIVES WHILE THE WAY FORWARD INCREASING GOVERNMENT REVENUE The tax proposal is a clear 'win-win' in terms of Maintaining the current rate could result in a decrease in health recovery from 17.8% to 15.6%. [...] To achieve similar health and revenue for the government and health cost recovery levels observed in 2023-24, a 37% the people of Pakistan. [...] A general argument increase in the FED rate for the upcoming year is that a tax increase may promote illicit trade suggested.