BACKGROUND: Tobacco taxation is an effective MPOWER measure to curb tobacco consumption by increasing prices, inducing cessation, and preventing initiations. However, like many low-and-middle-income countries (LMICs), Pakistan lacks a discernable tobacco taxation policy. The Framework Convention on Tobacco Control (FCTC) recommends that 70% of the retail price of tobacco products should constitute taxes. To move towards this goal, and strengthen tobacco control, Pakistan implemented the tobacco Track and Trace System (TTS) in July 2022 and raised the tobacco taxes by over 150% in February 2023. Despite these efforts, the Federal Excise Duty (FED) remains below the FCTC-recommended threshold reaching 45.9% for economy brands (from 35.6%) and 66% for premium brands (from 51.5%).
METHODS: This study assesses pricing and compliance with TTS stamps by analyzing approximately 3000 cigarette packs collected (for multiple studies), from 28 smoke-free cities in Pakistan. The research triangulates these findings with existing survey data from Pakistan. In an initial analysis conducted in Islamabad and Rawalpindi, 300 cigarette packs representing 26 brands were sampled from 11 outlets across various markets.
RESULTS: The initial findings revealed significant non-compliance with the Finance Act 2024. Nearly 50% of the sampled packs lacked printed prices and TTS stamps, and half of these were sold below the minimum price of PKR 163 per pack. Such violations highlight substantial gaps in enforcement and regulatory oversight.
CONCLUSIONS: The findings underscore gross violation of the Finance Act 2024, which mandates sealing retail outlets selling cigarette packs without legitimate tax stamps or with counterfeit stamps. It urgently calls for a comprehensive and sustainable tobacco taxation policy in Pakistan and robust enforcement mechanisms to ensure compliance with existing regulations. Enhanced implementation of TTS and taxation measures is crucial to achieving FCTC goals and advancing tobacco control in Pakistan and beyond.