Retail volume sales of cigarettes fall after higher taxes

ISLAMABAD: The retail volume sales of cigarettes were decreased in Pakistan due to higher taxes and awareness amongst cigarette consumers.

According to the Euro monitor report, the retail volume sales decreased by 1 percent in 2022, resulting in the sale of 60 billion sticks annually, the sale was set to decrease by 2 percent over the forecast period to 55 billion sticks.

Euro monitor further said the leading player has a retail volume share of 71 percent in the total market.

The report said following the ban on advertising tobacco products in Pakistan, and in the wake of the COVID-19 experience, there is an increasing awareness among consumers of the potential health risks of smoking tobacco actively and passively, individually or in any social setting.

Pakistan’s commitment to the Framework Convention on Tobacco Control (FCTC) underscores the importance of a unified pricing system for cigarettes to regulate the industry effectively and discourage consumption.

The WHO advocates for robust tax measures to reduce tobacco consumption, citing the effectiveness of a 10 percent increase in tobacco prices typically leads to a 4 percent decrease in overall tobacco consumption in high-income countries and up to an 8 percent decrease in low-and middle-income countries.

Copyright Business Recorder, 2024