Major Cigarette Manufacturer Price Slash Increases Cigarette Accessibility: Federal Law Breach Raises Urgent Health and Economic Concerns

Islamabad – (Nasir Abbas) : A leading cigarette manufacturer has drastically reduced the prices of its local cigarette packs, slashing prices from PKR 483 to PKR 283, a reduction of nearly 50%. This significant cut, aimed at reviving declining sales, not only raises urgent concerns about increased cigarette accessibility but also constitutes a clear breach of the Federal Excise Act of 2005. The newly priced cigarettes are available in the local market, further amplifying these concerns. The Federal Excise Act explicitly prohibits cigarette manufacturers from reducing retail prices below those set at the time of the latest budget announcement. This move to reduce prices so sharply undermines this regulation, designed to limit tobacco accessibility and curb smoking rates. By making cigarettes more affordable, the company is effectively increasing their accessibility to a broader audience, including vulnerable youth. This is particularly alarming given that, according to recent data, approximately 1,200 children between the ages of 6 and 15 start smoking every day in Pakistan. Mr. Zulfiqar Ali, General Manager Programs and Projects at the Human Development Foundation (HDF), expressed profound concern over the implications of this price cut: “This price reduction blatantly disregards the Federal Excise Act and significantly increases the accessibility of cigarettes. This not only violates regulatory safeguards but also poses a severe risk to public health. By making cigarettes more affordable, the company is likely to attract younger individuals, exacerbating smoking rates among children and teenagers and leading to a rise in tobacco-related health issues.” The potential consequences of this breach extend beyond regulatory non-compliance. Ms. Arooj Rajput, Project Manager of the Tobacco Control Campaign at HDF, highlighted the broader economic impact: “The increased accessibility of cigarettes due to this price cut could lead to a spike in youth smoking rates. This, in turn, would result in higher long-term healthcare costs and put additional strain on public health resources. Furthermore, the anticipated rise in cigarette sales on lower price tiers may reduce tobacco tax revenues for the government, exacerbating existing financial pressures.” This decision to cut prices and boost sales through increased accessibility not only violates federal law but also threatens to escalate tobacco consumption among youth, with serious implications for public health and economic stability. HDF urgently calls on the Federal Board of Revenue (FBR) to take immediate notice of this breach and enforce appropriate measures to address the violation. Additionally, HDF urges the implementation of effective public health policies to mitigate the adverse effects of increased tobacco use.