SPARC and SPDC launch cigarette tax simulation model 2025-2

The Society for the Protection of the Rights of the Child (SPARC), in collaboration with the Social Policy and Development Centre (SPDC), launched “The Price of Health: Cigarette Tax Simulation Model 2025–26.” This model provides evidence-based insights into how effective tobacco taxation can improve public health outcomes and generate vital government revenue. According to the model, if the government increases the Federal Excise Duty (FED) on cigarettes by Rs. 39 per pack in the upcoming fiscal year, it could generate an additional Rs. 67.4 billion in revenue.

Muhammad Asif Iqbal, Managing Director of the Social Policy and Development Centre (SPDC), said while presenting the model “Pakistan needs to take bold steps to unlock billions in potential revenue while tackling the public health dangers linked to tobacco use. A Rs. 39 increase in the FED will generate Rs. 67.4 billion—Rs. 58.2 billion from FED and Rs. 9.2 billion from GST. There has been no change in FED since February 2023, and the decrease in the real price of cigarettes due to high inflation has made them more affordable.”