Tobacco, sugar-sweetened beverages: Dawood to join body to firm up suggestions on Health Hazard Tax

ISLAMABAD: The Federal Cabinet has decided to include Prime Minister Advisor on Commerce and Investment, Abdul Razak Dawood in the Committee constituted to firm up recommendations on imposing Health Hazard Tax on tobacco and sugar sweetened beverages, official sources told Business Recorder.

The National Food Security & Research Division apprised the cabinet that Pakistan Tobacco Board (PTB) was established under Pakistan Tobacco Board Ordinance, 1968 (I of 1968) mainly to regulate, control and promote cultivation and export of tobacco and to undertake research in tobacco and develop new tobacco growing areas. The Board (notified members) was the principal policy making body of PTB.

The term of PTB members was two years under Section 4(1), and the composition of the PTB was under Section-3(1) of PTB Ordinance, 1968. The previous PTB was notified on 27th September, 2019 and completed its term on 26th September, 2021.

The Ministry of National Food Security & Research approached to the concerned Ministries/ Divisions/ Provincial Governments and private Trade Associations for nominations as prescribed under Section 3(1) of PTB Ordinance, 1968. The concerned Ministries/ Divisions/ Provincial Governments and private trade associations had nominated their officers/ members to be included/ notified in the PTB.

It was pertinent to mention that under section 3(1)(a) one member included in PTB from Khyber Pakhtunkhwa or the Punjab to be elected by Cigarette Manufacturers Association of Pakistan (CMA). Currently, CMA licence had been cancelled and CMA was not in position to forward any nomination for PTB. However, Federal Government under Section 3(1)(h) nominated two representatives, one from Pakistan Tobacco Company and other from Phillip Morris (Pak). LTD, as important stakeholders occupied more than 70 percent share of the tobacco business in Pakistan.

In view of the aforementioned nominations by the concerned Ministries/ Divisions /provincial governments and private trade associations, a notification for reconstitution of PTB was placed before the Cabinet for approval.

During discussion, the need for taxing cigarettes was underscored. The Special Assistant to the Prime Minister pointed out that the Cabinet had already constituted a Committee to firm up recommendations on imposing Health Hazard Tax on tobacco and sugar sweetened beverages. The Minister for Finance & Revenue recommended inclusion of Adviser to the Prime Minister on Commerce & Investment in the said Committee.

The National Health Services, Regulations & Coordination Division shall notify the addition. The Committee shall present its report at the earliest.

Copyright Business Recorder, 2022