ANL 34.10 Decreased By ▼ -0.15 (-0.44%)
ASC 13.65 Increased By ▲ 0.30 (2.25%)
ASL 23.40 Increased By ▲ 0.80 (3.54%)
AVN 85.60 Increased By ▲ 1.90 (2.27%)
BOP 7.70 No Change ▼ 0.00 (0%)
BYCO 9.44 Increased By ▲ 0.07 (0.75%)
DGKC 111.51 Increased By ▲ 1.31 (1.19%)
EPCL 48.99 Decreased By ▼ -1.90 (-3.73%)
FCCL 22.85 Increased By ▲ 0.09 (0.4%)
FFBL 25.47 Decreased By ▼ -0.23 (-0.89%)
FFL 15.33 Increased By ▲ 0.03 (0.2%)
HASCOL 8.94 Decreased By ▼ -0.06 (-0.67%)
HUBC 78.43 Decreased By ▼ -0.57 (-0.72%)
HUMNL 6.13 Increased By ▲ 0.29 (4.97%)
JSCL 19.14 Increased By ▲ 0.44 (2.35%)
KAPCO 40.50 Increased By ▲ 1.11 (2.82%)
KEL 3.72 Increased By ▲ 0.04 (1.09%)
LOTCHEM 14.20 Decreased By ▼ -0.15 (-1.05%)
MLCF 42.75 Increased By ▲ 0.45 (1.06%)
PAEL 30.90 Decreased By ▼ -0.17 (-0.55%)
PIBTL 9.52 Increased By ▲ 0.07 (0.74%)
POWER 8.61 Increased By ▲ 0.17 (2.01%)
PPL 82.50 Decreased By ▼ -0.80 (-0.96%)
PRL 23.09 Increased By ▲ 0.32 (1.41%)
PTC 9.00 Decreased By ▼ -0.20 (-2.17%)
SILK 1.38 Decreased By ▼ -0.02 (-1.43%)
SNGP 38.90 Increased By ▲ 0.31 (0.8%)
TRG 165.00 Increased By ▲ 1.78 (1.09%)
UNITY 35.80 Increased By ▲ 0.87 (2.49%)
WTL 1.53 Increased By ▲ 0.08 (5.52%)
BR100 4,846 Increased By ▲ 46.43 (0.97%)
BR30 24,817 Increased By ▲ 123.55 (0.5%)
KSE100 45,175 Increased By ▲ 231.06 (0.51%)
KSE30 18,470 Increased By ▲ 86.89 (0.47%)

Coronavirus
VERY HIGH
Pakistan Deaths
18,537
10824hr
Pakistan Cases
845,833
419824hr
Sindh
288,680
Punjab
312,522
Balochistan
22,900
Islamabad
77,065
KPK
121,728
Business & Finance

Pakistanis lose billions of dollars yearly owing to tobacco usage: Report

  • The study said that the tobacco industry’s total tax contribution (120 billion in 2019) is approximately just 20 percent of smoking’s total cost. It found that indirect costs (morbidity and mortality) make up 70 percent of the total cost.
07 Apr 2021

Pakistanis suffer losses to the tune of several billions of dollars owing to economic costs attributed to smoking-related diseases and deaths.

As per the latest study conducted by the Pakistan Institute of Development Economics (PIDE) titled The Economic Cost of Tobacco-Induced Diseases In Pakistan by Durre Nayab, Muhammad Nasir, Junaid Alam Memon, and Omer Siddique. The total costs attributable to all smoking-related diseases and deaths in Pakistan for 2019 are Rs 615.07 billion (US$3.85 billion).

The study said that the tobacco industry’s total tax contribution (120 billion in 2019) is approximately just 20 percent of smoking’s total cost. It found that indirect costs (morbidity and mortality) make up 70 percent of the total cost.

The major share (71 percent) of the total smoking-induced cost comes from cancer, cardiovascular, and respiratory diseases.

The report revealed that despite the evidence that higher tobacco taxation discourages tobacco consumption, Pakistan has a highly lenient tobacco tax policy. “Consequently, the tobacco industry enjoys a thriving customer base, currently comprising 24 million active tobacco users.”

As per the report, tobacco use has enormous direct and indirect costs. Direct costs include inpatient and outpatient hospital expenses, whereas indirect costs include the caregiving costs, the opportunity cost of the lost workdays of the patients and their caregivers, the cost of smoking-attributable deaths.

The report found that smoking-attributable total direct and indirect cost of cancer, cardiovascular, and respiratory diseases amount to Rs 437.76 billion (US$ 2.74 billion). “The cost of these three diseases is 3.65 times higher than the overall tax revenue collected from the tobacco industry, which was Rs 120 billion in 2019.”

The report recommended an increase of four to five times the current tax rate on the tobacco industry. “However, as a start, it is imperative that the Federal Board of Revenue (FBR) raises excise taxes to meet the WHO’s recommended threshold of 70 percent of the retail price of a cigarette pack.”

Furthermore, FBR must narrow the tobacco industry’s tax maneuvering space by gradually moving to a single-tier taxation system.