The Finance Act 2022 and subsequent Tax Law (Amendment) Ordinance raised FED on cigarettes by 24.5%. This fact sheet shows the reform’s dual impact: a projected 4.7% decline in consumption, PKR 25.2 billion in additional revenue, and over 400,000 smokers quitting alongside 435,000 youth discouraged from initiation. Despite progress, Pakistan’s excise share in retail price remains below the 70% benchmark, underscoring the need for sustained policy action.
