The significant 154 percent increase in federal excise duty (FED) on cigarettes in Pakistan has not yielded the intended public health benefits, according to a report by The News. Instead, it has driven smokers to cheaper, tax-evaded brands, exacerbating the illicit cigarette trade.
A study conducted by Umeed-e-Sehar, titled “The Impact of Cigarette Price Increase on Smoking Behavior & Patterns,” found that despite the tax hike, 89 percent of smokers did not reduce their consumption. Instead, 80 percent opted for more affordable brands, and 67 percent switched to illegal, untaxed cigarettes. This shift undermines public health goals by making untaxed, potentially more harmful products more accessible and complicates regulatory efforts.
The study, which surveyed 1,698 smokers and 60 retailer shops across multiple cities, highlights the unintended consequences of the tax increase. It reveals that while the government aimed to reduce smoking by making cigarettes unaffordable, the result has been an increased tendency for smokers to switch to cheaper, illegal alternatives, rather than quitting or reducing consumption.
