ISLAMABAD: Economists as well as public health and environmental specialists have urged the government to reverse the freeze on tobacco taxation, introduce yearly inflation-linked increases in cigarette taxes and examine a climate levy on the tobacco industry, saying the current policy is raising costs for public health, the economy and the environment.
The recommendations were presented at a policy dialogue titled The Cost of Inaction: Tobacco Tax Freeze in Pakistan’s 2026-27 Budget, organised jointly by the Sustainable Development Policy Institute (SDPI) and the Social Policy and Development Centre (SPDC).
