Pakistan signed WHO FCTC in 2005, and developed multiple laws in accordance to the guidelines. Article 6 of the FCTC encourages parties to formulate tobacco tax policies ensuring a minimum of 70% share of taxes in the tobacco products. Like many other Low and Middle Income Countries (LMICs), Pakistan continues to face enormous challenges in tobacco taxation. In light of FCTC Article 6, and absence of a tobacco taxation policy, this report critically analyzes the Finance Act 2024 (change in five aspects related to tobacco), and finds that there are many anomalies in the current taxation policies and practice. This report recommends that Pakistan urgently needs to revisit tobacco taxation structure, besides immediate development and adoption of a long-term multi-sectoral tobacco taxation policy.
