Islamabad : Dr Ashar Malik from Aga Khan University has stressed that tobacco products should not be treated as conventional economic goods due to their severe health consequences.
Dr Malik was speaking at a policy seminar on "Strengthening tobacco taxation for public health and fiscal gains: preparing for the 2026-27 Budget” organised here by Sustainable Development Policy Institute (SDPI).
Dr Malik underscored taxation as the single most effective global strategy to reduce tobacco consumption but warned that regulatory gaps allow alternative tobacco products, particularly smokeless forms, to escape adequate taxation. He recommended expanding taxation and legislation to include all forms of tobacco, alongside improved early diagnosis mechanisms for tobacco-related diseases, including lung and oral cancers.
Dr Sajid Amin Javed, Deputy Executive Director, SDPI, described tobacco taxation a “win-win” policy with benefits for revenue generation, public health and economic stability. He suggested the formation of a working group of think tanks to initiate dialogue, conduct awareness campaigns and engage educational institutions on the health risks of tobacco.
He further suggested that commonly consumed cigarette brands should face higher taxation, while revenues generated should be earmarked for health sector improvements. Highlighting youth vulnerability, he proposed the mapping of youth consumption trends and imposing higher taxes on products popular among young people to limit affordability.
Waseem Iftikhar Janjua from SDPI called the existing two-tier taxation system inequitable and counterproductive. He noted that the tax gap between premium and economy brands encourages smokers to switch to cheaper options instead of quitting.
He suggested a progressive increase in taxes on lower-tier brands while narrowing the gap with premium products to move toward a single-tier system. He also urged the government to adopt automatic annual excise increases that outpace inflation and GDP growth with a three-to-five-year roadmap for reform.
Dr Irfan Chatha of SDPI highlighted that taxation alone is insufficient without complementary enforcement and policy alignment. Discussing about the persistent consumption level of around 80 billion cigarette sticks annually, he stressed the need for a broader strategy combining taxation, enforcement against illicit trade and institutional coordination.
