SPARC Advocates for a 26% Increase in Tobacco Taxes in the Upcoming Budget: SIFC
Saad khan 
Islamabad: The Society for the Protection of the Rights of the Child (SPARC) has requested the Special Investment Facilitation Council (SIFC) to advocate for a 26 percent increase in cigarette taxes in the upcoming 2024–25 budget.
Malik Imran Ahmad, Country Head of the Campaign for Tobacco-Free Kids (CTFK), highlighted that higher taxes on tobacco products can lead to increased revenue for the government. He noted that Pakistan, with 64% of its population below the age of 30 and 29% between the ages of 15 and 29, sees approximately 1,200 children starting to smoke every day. Ahmad emphasized the urgency of protecting future generations from addiction and death, stating that responsible citizens and stakeholders must take action.
Dr. Khalil Ahmad, Program Manager at SPARC, expressed gratitude towards the SIFC, stressing the need for sustainable economic decisions to benefit both the economy and public health. He argued that the proposed 26% tax increase on cigarettes could significantly strengthen the economy and protect Pakistani children if included in the 2024–25 federal budget.
In a statement issued on Tuesday, SPARC appreciated the SIFC’s previous efforts to make better economic decisions. The organization pointed out that tobacco should top the list of non-essential items for tax increases to boost the economy. Health activists are optimistic that the SIFC will advocate for higher cigarette taxes in the upcoming budget.
SPARC emphasized that this tax hike would be a win-win situation for both the economy and public health, potentially generating Rs 17 billion in revenue. Additionally, the tax increase could lead to long-term savings in health costs by 19.8%. Tobacco-related illnesses currently take around 166,000 lives annually in Pakistan, placing a significant burden on the healthcare system. Reducing tobacco consumption would alleviate some of this burden, freeing up resources for other areas of healthcare.
Revenue from the proposed tax increase could be allocated to sectors like healthcare, education, or infrastructure, indirectly contributing to economic growth.
