UNMASKING THE APPEAL: EXPOSING TOBACCO INDUSTRY INTERFERENCE IN TOBACCO TAXATION

In alignment with the WHO’s 2025 World No Tobacco Day theme. “Unmasking the Appeal: Exposing Industry Tactics on Tobacco Products," Social Policy and Development Center (SPDC) in collaboration with the Sustainable Development Policy Institute (SDPI), is organizing a seminar. This engagement aims to shed light on the persistent challenges posed by the tobacco industry's influence on Pakistan's taxation policies and the broader implications for public health and economic stability.

Tobacco taxation is one of the most cost-effective measures to achieve positive health outcomes and reduce consumption. Despite the WHO's recommendations of a 70% tax share in retail prices of cigarettes, Pakistan's current two-tier taxation system stands at 68.3% for premium brands and 52.6% for economy brands (averaging at 54.8%). This disparity has contributed to the affordability of tobacco products, particularly among youth and low-income populations. Compounding the issue, the tobacco industry employs tactics such as front-loading, brand reclassification, and media campaigns to resist tax reforms and maintain market dominance. A significant concern is the industry's exaggerated portrayal of illicit trade–an administrative and enforcement issue–as a taxation problem.

By presenting the findings of recent studies and global best practices, the seminar seeks and foster a comprehensive understanding of the tobacco industry’s interference in taxation and promote policy recommendations that align with international standards. The event aspires to catalyze actionable strategies for effective tobacco taxation and tax administration, the significance of improved enforcement mechanisms such as the Tobacco Track and Trace System, and the protection of public health interests in Pakistan.