Federal Budget Proposes Significant Increase in Federal Excise Duty on Cigarettes

RAWALPINDI: The Society for the Protection of the Rights of the Child (SPARC), a non-governmental organization working for the protection of children’s rights, has proposed a significant increase in the Federal Excise Duty (FED) on cigarettes in the federal budget for the upcoming fiscal year 2026-27.

The proposal said that this would generate additional revenue of up to Rs51 billion to the national exchequer. The proposals also recommend an increase of at least Rs35 on a pack of low-priced cigarettes and Rs21 on a pack of expensive cigarettes.

SPARC also emphasized the gradual transition to a uniform tax system so that price differences are reduced and the availability of cigarettes is limited.

According to experts, these measures will not only increase government revenue but will also help prevent approximately 370,000 youth from starting smoking, as well as increase the chances of 270,000 people quitting the habit.