This policy brief is based on a research study entitled Quantifying the Potential Tax Base of Cigarette Industry in Pakistan. The cigarette industry remains under‑taxed, with FBR unable to fully capture its revenue potential. Despite tobacco being a high‑burden sector, weak enforcement, under‑reporting, and industry influence have led to significant fiscal losses. SPDC’s analysis highlights how stronger excise reforms, improved monitoring, and effective administration could unlock billions in untapped revenue while reducing tobacco consumption and advancing public health goals.
