Cigarette costs will increase by 50% and will cause demand to decline

A 50 percent rise in smokes price will result in a drop in Pakistan’s tobacco demand, as most smokers opt to quit rather than move to other brands.

This has been shown by the current Pakistan Institute of Development Economics in its research paper on “Switching, Reduction or Quitting: How do smokers respond to rises in tobacco taxes in Pakistan” (PIDE).

The PIDE study found that increased costs would assist lower the use of cigarettes, adding that higher prices will increase.

It demonstrates that just 9% of cigarette smokers decide to switch, while the remainder opt for cigarettes or reduced their use. Of the 9% who are going to switch to non-tobacco goods, about 15% of users are going to move.

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