Cigarette sales in Pakistan plummet after tax hike

Cigarette sales in Pakistan plummet after tax hike

The Associated Press Pakistan branch reported, citing data from Capital Calling, that cigarette consumption in Pakistan fell by 20 billion sticks due to a sharp increase in federal excise taxes.

In February 2023, after several consecutive years of relatively small tax increases, the Pakistani government increased the excise tax on cigarettes by 146%.

Capital Calling found in its research that tax increases prompted 14% of smokers to quit smoking, resulting in 11 billion fewer cigarettes consumed, and 10% of smokers reduced cigarette consumption, which reduced cigarette consumption by an additional 9 billion. .
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