Table 4

Impact of tax changes on consumption and tax revenues in Pakistani Rupees (PKR)

TaxRetail priceCigarette consumptionTax revenue (millions PKR)
Actual (%)PKR (10 cig)PKR (10 cig)Increase (%)Decrease (%)Actual (millions of cigarettes)
52.00%4.749.110.00%0.00%75620.3535822.87
54.40%5.219.585.20%6.09%71016.8937028.21
55.50%5.459.827.80%9.13%68715.1637456.63
56.55%5.6910.0610.41%12.18%66413.4337775.96
57.55%5.9310.3013.01%15.22%64111.7037986.18
58.51%6.1610.5315.61%18.26%61809.9738087.30
59.42%6.4010.7718.21%21.31%59508.2338079.32
60.29%6.6411.0120.81%24.35%57206.5037962.24
61.13%6.8711.2423.41%27.39%54904.7737736.05
61.93%7.1111.4826.02%30.44%52603.0437400.76
62.70%7.3511.7228.62%33.48%50301.3136956.37
63.44%7.5811.9531.22%36.53%47999.5836402.88
64.15%7.8212.1933.82%39.57%45697.8535740.29
64.84%8.0612.4336.42%42.61%43396.1234968.59
65.50%8.3012.6739.02%45.66%41094.3934087.80
66.13%8.5312.9041.62%48.70%38792.6633097.90
66.74%8.7713.1444.23%51.74%36490.9331998.89
67.33%9.0113.3846.83%54.79%34189.2030790.79
67.90%9.2413.6149.43%57.83%31887.4729473.59
68.45%9.4813.8552.03%60.88%29585.7428047.28
  • These projections are based on the assumption that the price elasticity used is constant.