World Health Organisation (WHO) has expressed serious concern over nominal increase in the federal excise duty (FED) on cigarettes and withdrawal of excise duty on cigarette rods with no restoration of the supervised clearance system at the multinational companies.
Talking to Business Recorder here on Tuesday, Shahzad Alam Khan, National Professional Officer, Tobacco Control WHO said the government has abolished the FED on filter rods used in manufacturing of cigarettes in budget (2012-13).
It is unclear that how such a big facilitative measure has been given to the cigarette manufacturers with no major increase in the incidence of taxes on cigarettes. Instead of simplifying the tax collection system from the industry, the cigarette manufacturers particularly multinational companies have been given relief. The existing complicated slabs structure on cigarette has not been changed to facilitate the multinational companies. "The withdrawal of excise on cigarette rods is a big question. It is not understood as to why this has been done?" he added.
The tobacco industry leaves no stone unturned to subvert the efforts and roles of the government and WHO in implementing public health policies to combat the tobacco epidemic. The proposed increase in tobacco excise and taxation doesn't seem much in view of high inflation and heavy consumption. It seems Pakistan will continue to have the cheapest cigarettes in the world, well within the reach of many.
It is a proven fact that the increase in tobacco excise and taxation not only earns revenues for the national kitty but also reduces the tobacco consumption which indeed is a win-win situation. But the opportunity of achieving a win-win situation seems to be lost, he said.
As per the Article 5.3 of the WHO Frame Work Convention on Tobacco Control (duly endorsed by Pakistan), the government needs to be alert to any efforts by the tobacco industry to undermine or subvert tobacco control efforts. Therefore, government should always keep Article 5.3 and its guidelines in view while making any interaction with the tobacco industry. Following are the Guiding principles for the WHO member states including Pakistan, he said.
He said that there is a fundamental and irreconcilable conflict between the tobacco industry's interests and public health policy interests. The tobacco industry produces and promotes a product that has been proven scientifically to be addictive, to cause disease and death and to give rise to a variety of social ills, including increased poverty. Therefore, stakeholders should protect the formulation and implementation of public health policies for tobacco control from the tobacco industry to the greatest extent possible.
The parties, when dealing with the tobacco industry or those working to further its interests, should be accountable and transparent. The parties should ensure that any interaction with the tobacco industry on matters related to tobacco control or public health is accountable and transparent.
The government should require the tobacco industry and those working to further its interests to operate and act in a manner that is accountable and transparent. The tobacco industry should be required to provide Parties with information for effective implementation of these guidelines. Because their products are lethal, the tobacco industry should not be granted incentives to establish or run their businesses.
Any preferential treatment of the tobacco industry would be in conflict with tobacco control policy. National Professional Officer, Tobacco Control WHO has recommended the government should take following measures including raise the tobacco taxation while keeping in view the inflation; simplify the existing three-tier system (slabs) and review the proposed raise in tobacco taxation and ensuring that the industry does not intervene or manipulate; take back the decision of withdrawing excise duty of cigarette rods; implement Article 5.3 of the WHO FCTC and its guidelines and ensure supervised clearance of productions by MNCs and introduce tax stamps to ensure tracking and tracing system as has been implemented in Turkey, Shahzad Alam Khan added.
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