
Pakistan Raises E-Cigarette Liquid Duty in Budget Shift
Pakistan’s Federal Budget 2026-27 is reported to keep cigarette excise duties unchanged while raising the federal excise duty on e-liquids for electronic cigarettes from Rs10,000 to Rs16,500 per kilogram. The budget also cuts the duty on acetate tow, a key cigarette filter input, from Rs44,000 to Rs10,000 per kilogram. For readers, the shift could affect pricing, product costs, and the relative tax treatment of cigarettes versus vaping products. It is not yet clarified how the changes will be implemented in practice or whether the final budget wording leaves any room for adjustment.
Why it matters — For consumers, this could feed into retail prices for vaping products and possibly influence product choices. For regulators and public health observers, the budget signals a notable change in how Pakistan is taxing nicotine products, with different treatment for e-liquids and cigarette inputs that may shape market behaviour.
Related themes: Taxation, Vaping
Source reporting
This briefing was curated from reporting by the following publications.
Tobacco Reporter2 Jul 2026Pakistan Revises Excise Duties

