The 2022 Index is the result of a process of company research, scoring, and ranking conducted by the Index Research Partner2 over the two-year review period from 2019 to 2021. As described in the Index Methodology report, the Index methodology is based on a set of 35 indicators organized under six categories of company actions and performance
With the stated aim of increasing revenue and discouraging smoking, Pakistan raised tobacco duties over the past five years. The result empowered illicit actors, with a flourishing of illicit production and smuggling of cigarettes.
In 2013, Pakistan adopted a new tobacco taxation policy with two specific excise tiers. Then the excise rates were regularly increased in 2014-2016. Cigarette prices increased and, despite the substantial reduction of tobacco affordability, cigarette production almost did not change. Total revenue increased by 50% in nominal terms, or by 30% in real terms in three years.
Tobacco taxation is a major concern of health and tax policies in Pakistan. Although the tobacco industry thrives on 22 million active tobacco consumers and 100,000 premature deaths in Pakistan, it is still attractive because of a tax tag worth USD 1 billion. Nevertheless, tobacco taxation has largely been an under-researched area; thus, evidence-based policy making is lacking. This report presents an economic analysis of tobacco taxation and consumption in Pakistan and provides three distinct but interconnected analyses based on research conducted by the Pakistan Institute of Development Economics (PIDE).
This report provides a glimpse of the tobacco landscape in Pakistan. Despite bans in recent years, there are still 24 million users of smoked and smokeless tobacco in Pakistan. Given the high levels of tobacco use, the country faces considerable health and economic consequences.
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