ISLAMABAD: Experts at a recent seminar voiced alarm over the lack of taxation on smokeless tobacco products and minimal regulation of nicotine pouches, which, they said, enables the tobacco industry to exploit alternative avenues to target consumers.
The seminar, titled “Taxing Tobacco: A Path to Reducing Consumption and Saving Lives”, organised by the Sustainable Development Policy Institute (SDPI), underscored the urgent need for a comprehensive tobacco taxation policy in Pakistan.
Experts criticised the existing two-tier tax system, stating it allows the tobacco industry to manipulate prices, thereby undermining the public health benefits of taxation.
Participants highlighted that products like Naswar remain untaxed, while nicotine pouches operate with minimal oversight, enabling the industry to sidestep regulations, calling for extending taxation to all tobacco products to curb affordability and reduce associated health risks.
Drawing inspiration from the World Health Organisation's Framework Convention on Tobacco Control (FCTC) and MPOWER framework, the discussions centred on tailoring global best practices to Pakistan’s context.
Recommendations included introducing health-specific taxes to fund public health initiatives, strengthening regional cooperation to combat cross-border smuggling, and broadening the track-and-trace system to include smokeless products and exports.
These measures, the experts noted, would help Pakistan achieve the WHO’s target of a 70pc tax share in the retail price of tobacco products.
Syed Wasif Ali Naqvi, Senior Research Associate and Head of Policy Advocacy at SDPI, described tobacco taxation as a critical tool for reducing consumption and generating revenue. He lamented the absence of long-term policies and the pervasive influence of the tobacco industry.
Dr Waseem Iftikhar Janjua criticised the country’s tobacco taxation framework, calling for a progressive policy to make tobacco products less affordable and to align with international health standards.
He stressed the importance of regularly adjusting taxes to counter inflation and bridging the gap between Pakistan’s current tax rates and WHO benchmarks.
Dr Waseem also highlighted the growing market share of nicotine pouches and smokeless tobacco products, warning that their lack of regulation poses significant health risks. Additionally, he urged stricter enforcement against the sale of loose cigarettes, which remain easily accessible to youth and encourage early addiction.
Asif Iqbal advocated for a stable 3-5-year taxation framework to mitigate the uncertainties of annual budget cycles. He pointed to the widening tax gap between economy-tier and premium-tier tobacco brands, suggesting gradual tax increases on economy-tier products to address disparities.
Khurram Hashmi, Senior Technical Lead at Vital Strategies, called for cohesive action among anti-tobacco stakeholders to counter industry narratives. He emphasised the health and economic benefits of stringent policies, urging authorities to prioritise public health by implementing robust taxation measures.
The seminar concluded with a unanimous call for decisive action to combat the public health crisis posed by tobacco consumption in Pakistan.