ISLAMABAD - Healthcare activists have called for a tobacco tax hike in 2024 to recover healthcare costs and save lives. They said this at an event by The Society for the Protection of the Rights of the Child (SPARC). Muhammad Sabir, Principal Economist at the Social Policy and Development Centre (SPDC), shared the recommendations at an event organized to launch a tobacco taxation simulation model published by the Social Policy and Development Centre (SPDC). Sabir said that Pakistan presently operates with a two-tiered Federal Excise Duty (FED) structure for cigarettes, categorized by price tiers. Following a substantial increase in 2022-23, the FED share in retail prices reached 48% and 68% for low and high tiers, respectively. However, the leveling off of the FED share in 2023-24, due to the absence of rate adjustments, could adversely affect revenue and public health efforts. Sabir added that a proposed 26.6% FED increase in 2024 could recoup 19.8% of the costs, narrowing the gap between health burdens and tax revenues. A 26.6% FED hike could potentially lead to 517,000 fewer smokers, a 12.1% increase in tax revenue, and a 19.8% recovery of health costs. Beyond 2023-24, the government should integrate cost recovery into tobacco tax policies through automatic adjustments, implement a uniform FED rate across all cigarette brands, and prescribe tax increases for the next three years. Dr. Ziauddin Islam, Former Technical Head, Tobacco Control Cell, Ministry of National Health Services and Regulations and Coordination, stated that recent statistics reveal that in Pakistan, 31.9 million adults aged 15 years and above, approximately 19.7% of the adult population, are current tobacco users. The use of tobacco leads to over 160,000 deaths annually in Pakistan, amounting to 1.4% of the nation’s GDP each year. It is imperative to revitalize Pakistan’s cigarette taxation system. He added that the costs associated with smoking-related health issues have surpassed the revenue generated from cigarette taxes. In 2022-23, taxes covered only 16% of these costs, a significant decline from 19.5% in 2019.