The sources said that, the Pakistani government is considering raising the price of cigarettes in the fiscal year 2024-25.
National Institute of Health
According to details, National Institute of Health begun to receive advice from customers regarding the increase in cigarette rates.
Cigarettes in FY 2024-25
According to sources, NGOs have recommended a 26.6% increase in the Federal Excise Duty (FED) on tobacco.
The Tobacco Control Cell has also finalised its recommendations for increasing the cost of cigarettes in the budget for 2025.
The Ministry of Health will wrap up the suggestions and send them to the Ministry of Finance this week.
According to sources familiar with the matter, the FED on tobacco could increase by 15% to 19% in the 2025 budget.
FED of Rs120 per cigarette pack
Currently, the Pakistani government charges a FED of Rs120 per cigarette pack, whereas local industry cigarettes are sold for Rs90 per pack.
Last year, worldwide cigarette manufacturers paid Rs173 billion in taxes, while local cigarette manufacturers evaded Rs240 billion in taxes.
Pakistan faces a significant challenge from frequent use of tobacco, with over 31.9 million adults aged 15 and up recognised as current tobacco users, accounting for nearly 19.7% of the adults.
Every year, smoking-related illnesses claim the lives of over 160,000 people, accounting for a significant 1.6% of the national GDP. However, in fiscal year 2022-23, cigarette taxes covered only 16% of these expenses, down from 19.5% in 2019.
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