THE recent report of the Pakistan Institute of Development Economics (PIDE) on the economic cost of tobacco-induced diseases in the country is very shocking.
According to the report, the total costs attributable to all smoking-related diseases and deaths in Pakistan for the year 2019 were Rs615.07 billion, or $3.85bn. This amount was five times higher than the overall tax revenue the government generated from the tobacco industry, which was Rs120bn in 2019.
Tobacco kills over 166,000 people every year in the country. Despite evidence that higher tobacco taxation discourages tobacco consumption, Pakistan’s tax policy is among the weakest action areas in the country’s fight against tobacco.
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