ISLAMABAD: The International Diabetes Federation (IDF) and the Diabetic Association of Pakistan (DAP) have approached the budget makers in the Finance Ministry to increase Federal Excise Duty (FED) on a wide range of sugar sweetened beverages in the coming budget (2021-22).
According to a letter of the IDF to the government received here on recently, the IDF would like to raise its concern about the high number of people living with diabetes in Pakistan (currently estimated to be 19.4 million, though this is thought to be a conservative estimate) and the many more at high risk of developing diabetes.
More than a third of adults in Pakistan are either obese or overweight and therefore at increased risk of diabetes and other health problems.
On May 31, the Federal Board of Revenue (FBR) will submit its proposals to the Ministry of Finance for the forthcoming budget.
“The IDF would like to propose the government give serious consideration to fiscal policies that can help reduce the consumption of goods detrimental to health and encourage citizens to make healthier choices. Specifically, we would recommend serious consideration to be given to increased taxation on Sugar-Sweetened Beverages (SSBs).”
The IDF supports the request of the Diabetic Association of Pakistan to increase excise duty on SSBs to 20 percent and to broaden the category beyond its current definition to include juices, energy drinks, flavoured milk, iced tea and other drinks sweetened with added sugars.
Taxation to reduce the consumption of SSBs has proved a highly effective tool to reduce the burden of obesity and type 2 diabetes.
The increasing availability of ultra-processed and sugary foods, reduced physical activity, and higher incomes, which often go hand-in-hand with a higher consumption of unhealthy foods, are significant contributing factors and key areas where policy intervention can help make a difference.
The IDF strongly recommend considering the taxation of SSBs to support healthier habits that will be of financial benefit to individuals, in terms of reducing expenditure on products detrimental to their health and beneficial to societies in terms of savings from reduced healthcare costs and lost productivity.
A recent study of the consumption trends for SSBs in Pakistan shows that carbonated beverages have become an integral part of the Pakistani diet, with SSBs constituting as much as 70 percent of non-alcoholic beverages consumed.
The IDF sincerely hopes the government will give serious consideration to our request to take action to prevent diabetes by responding positively to the proposal of the Diabetic Association of Pakistan to increase excise duty on a wide range of sugar sweetened beverages, it added.
Copyright Business Recorder, 2021
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