By: Our Correspondent
Islamabad: Journalists briefed about the implications of low tobacco taxation on Pakistan’s economy and also discussed the opportunity for the new govt. to generate revenue by increasing tobacco taxes on Friday at a local hotel, in Islamabad. The session was organized by Society for the Protection of the Rights of the Child (SPARC).
Public Health Experts recommended new govt. should increase FED on Tobacco Products by 30% to generate additional revenue that can be used for the well-being of people since the budget is a crucial challenge for the govt.
Mr. Khalil Ahmed Dogar, Program Manager SPARC told the media that Tobacco taxes are the most cost-effective tobacco control measure. The use of tobacco causes annual an economic burden of 615 billion which is 1.6% of Pakistan’s GDP. This leads to significant negative externalities, including high healthcare costs and lost productivity due to tobacco-attributable diseases contrary the revenue generated from the tobacco industry is 120 billion in 2019 is approximately just 20 percent of smoking’s total cost.
He stressed that the health and economic costs of tobacco use are more than five times the tax receipts, even though the tobacco industry is a major taxpayer in absolute terms, the tax contribution of the tobacco industry is a small fraction of what tobacco consumption costs the government and society.
Since taxes on tobacco didn’t interest the previous govt, it’s an opportunity for the sitting govt. to generate revenue by increasing taxes on tobacco and tame the deficit, he added.
Speaking to participants, Dr Ziauddin Islam, former technical head Tobacco Control Cell (TCC), Ministry of Health said that the Tobacco industry misguides govt. over illicit trade, according to Tobacco Industry data in January 2021 illegal cigarette costs 40 billion to the economy, and in February 2021 they quoted 77 billion without any justification, whereas according to an Independent Report illicit cigarette market is only 10-15%, he said.
He further added that tobacco use has direct and indirect effects on children’s health. Daily 1200 children initiate smoking. Increasing tobacco taxes will bring this number down. Raising taxation on tobacco is the most suitable measure of reducing tobacco use and associated health risks, especially among low-income populations.
Mr. Shariq Mahmood Khan, CEO of Chromatic Trust, said that the tobacco hazard can be controlled by increasing taxes as children are more price-sensitive and creating awareness. Recently tobacco and related industries have increasingly preyed on children and adolescents, engaging in advertising tactics like sponsorships and influencer marketing to target them directly that threaten their health.
He appealed to the new gov to raise awareness and help the directorate of health to implement tobacco control laws and increase tobacco taxes to reduce consumption and generate additional income.
