This SPDC brief underscores the enormous potential of taxation to discourage smoking, reduce prevalence, and raise revenues. Survey evidence shows Pakistan’s cigarette market is highly concentrated, with six brands consumed by over 80% of smokers and three firms controlling 88% of sales. Price changes strongly influence behaviour: past hikes reduced consumption and prompted quit attempts, while tax cuts increased smoking. Following the February 2023 excise hike, overall use fell by nearly 19%, with one‑quarter of smokers cutting daily intake.
