ISLAMABAD:
Economists, public health and environmental experts have called upon the government to end the freeze on tobacco taxation, introduce inflation-adjusted annual increases in cigarette taxes, and consider a climate tax on the tobacco industry, warning that continued inaction is imposing high costs on Pakistan’s health system, economy and environment.
The recommendations were made during a policy dialogue titled “The Cost of Inaction: Tobacco Tax Freeze in Pakistan’s 2026-27 Budget,” jointly organised by the Sustainable Development Policy Institute (SDPI) and the Social Policy and Development Centre (SPDC).