‘Taxing tobacco vital to saving lives’

Islamabad:Speakers at a seminar believe in commitment to leveraging taxation as a critical tool for public health and economic sustainability. The seminar titled ‘Taxing Tobacco: A Path to Reducing Consumption and Saving Lives’, was organised by the Sustainable Development Policy Institute, served as a pivotal forum to address the critical need for a robust and sustainable tobacco taxation policy in Pakistan.

Experts believe that the current two-tiered tobacco taxation system enables the tobacco industry to undermine the impact of tax increases. By pre-emptively raising prices ahead of budget announcements, the industry dilutes the intended public health benefits. The absence of taxation on smokeless tobacco products such as ‘Naswar’ and the minimal regulation of nicotine pouches further exacerbate the issue, creating loopholes that allow the industry to target consumers through alternative channels. Against this backdrop, the seminar served as a call to action for developing a structured, long-term taxation policy that ensures equitable coverage of all tobacco products, reduces affordability, and mitigates health risks.

Drawing inspiration from the World Health Organisation’s Framework Convention on Tobacco Control (FCTC) and the MPOWER framework, discussions revolved around adapting global best practices to the Pakistani context. Speakers underscored the importance of introducing health-specific taxes to fund public health programs, combating cross-border smuggling through regional collaboration, and expanding the track-and-trace system to include exports and smokeless tobacco products. The recommendations were aligned with the WHO’s guideline of achieving a minimum 70% tax share in the retail price of tobacco products, a benchmark Pakistan has yet to meet.