SPARC Proposes Higher Cigarette Taxes in Pakistan’s 2026–27 Budget to Boost Revenue and Curb Smoking
RAWALPINDI: Society for the Protection of the Rights of the Child (SPARC), a non-governmental organization working for child rights, has proposed a significant increase in the Federal Excise Duty (FED) on cigarettes in Pakistan’s upcoming 2026–27 federal budget.
According to the proposal, the recommended tax hike could generate up to Rs51 billion in additional revenue for the national exchequer. SPARC has suggested increasing the price of low-cost cigarette packs by at least Rs35, while premium brands should see a rise of Rs21 per pack.
The organization also emphasized the need for a gradual transition toward a uniform tax system to reduce price disparities between cigarette brands and limit their accessibility.
Experts believe that such measures would not only strengthen government revenues but also deliver substantial public health benefits. Estimates suggest that around 370,000 young people could be prevented from starting smoking, while approximately 270,000 existing smokers may be encouraged to quit.
