Contrary to industry claims, higher tobacco taxes strengthen Pakistan’s economy rather than harm it. Evidence shows that excise increases reduce smoking prevalence, generate substantial revenue, and ease the burden of tobacco‑related health costs. This policy brief is based on a research study entitled ‘Economic implications of cigarette taxation in Pakistan: An exploration through a CGE model’. The study demonstrates that well‑designed tax reforms deliver a “double dividend” by protecting public health and supporting fiscal sustainability.
