The Federal Board of Revenue’s (FBR) proposal to lower taxes on beverages and tobacco is a reckless gamble with public health. As part of ongoing negotiations, the FBR has presented these tax cuts to the International Monetary Fund (IMF), justifying them as revenue-generating measures. In a country already drowning in preventable diseases, this move ignores overwhelming evidence and contradicts global best practices. While the government justifies the decision as a way to increase sales and generate Rs90-100 billion in revenue, the real cost will be measured in lives lost, hospitals overwhelmed, and families devastated by illnesses that could have been avoided.
Pakistan has the highest diabetes prevalence in the world. Over 33 million people are living with diabetes, and if nothing changes, that number is set to nearly double to 62 million by 2045. Sugary drinks are fueling this epidemic, with research showing that excessive consumption increases diabetes risk by 30%. And yet, instead of making these harmful products harder to access, the government is considering making them cheaper.
The situation with tobacco is just as dire. Over 163,600 Pakistanis die every year from smoking-related illnesses, yet the government is thinking about making cigarettes more affordable. Lowering taxes on tobacco is an open invitation for more people—especially young people—to start smoking. It means more cancer, more heart disease, more suffering. While countries around the world are not only taxing cigarettes but also working to regulate and promote better alternatives to smoking, Pakistan is doing the exact opposite—making harmful products more accessible.
Zohaib Zia, an official of Flourish Pakistan, a prominent organization championing robust health policies, firmly condemns the proposed tax reduction. “Lowering taxes on sugary drinks and tobacco directly encourages increased consumption, which in turn worsens our already alarming health crisis. The burden of NCDs is already crippling Pakistan’s healthcare system. We should be reinforcing preventive measures, not dismantling them,” he stated.
This is not a policy decision—it’s a betrayal of public trust. The FBR’s mandate is revenue generation, but taxation policies should not come at the expense of public health. It is the government’s responsibility to ensure that fiscal decisions align with the nation’s well-being. While these proposals have been discussed with the IMF, no final decision has been taken yet according to officials.
