Higher taxes ‘most effective’ tool to curtail tobacco consumption: PIDE study

ISLAMABAD: A study conducted by the Pakistan Institute of Development Economics (PIDE) has confirmed that the increase in the price of cigarettes through taxes is the most effective way to curtail tobacco consumption or reduce the number of smokers.

Commenting on the recent raise in the excise duty on cigarettes, the latest research reports and studies confirmed that the recent rise in Federal Excise Duty (FED) has created a barrier between international tobacco companies and the health of smokers.

The PIDE study has further proved that 50 percent increase in price would lead to the same amount of reduction in cigarette demand and consumption.

Another report revealed that despite unfair arguments from international tobacco companies justifying why there should be low or no taxes on tobacco, the fact remains that tobacco is not a food commodity to be made affordable. It is a health hazard that needs to be properly controlled by state mechanisms.

An effective taxation policy supported by various tobacco control measures, including awareness campaigns, would help thousands of people to take the decision of quitting smoking, the report revealed.

The report added that nearly 22 million people (which are 20 percent adults) in Pakistan are actively smoking. According to estimates, these smokers burned about 70 billion cigarettes worth over Rs 350 billion in one year period.

Copyright Business Recorder, 2023