Tobacco Taxation: a win-win policy to mend health, revenue

Currently, the average excise tax on cigarettes in Pakistan is at 45.4 percent of the retail price. Increasing the tax rate will improve health outcomes by reducing cigarette consumption and generating additional revenues for the government, according to the SPDC’s policy note titled ‘Modelling the Revenue and Health Implications of Tobacco Tax Policy in Pakistan: Options for the Federal Budget’ 2021-22′.