ISLAMABAD: The Ministry of National Health Services and Regulations has proposed to the Ministry of Finance to increase taxes on sugary drinks to reduce usage as the drinks are posing a serious threat to public health, Dr Baseer Khan Achackzai, director general of Ministry of National Health Services has said.
While talking to Business Recorder here on Wednesday on the sidelines of an event, he said if the government imposed only 10 percent tax on four leading sugary drinks being sold in the country it would generate Rs120 billion annually which could be utilised on improving the public health-related infrastructure.
He further said that “the rising consumption of sugary drinks is posing a serious threat to public health and the economy of the country. As per International Diabetes Federation (IDF), more than 1,100 people are dying daily due to diabetes and its complication in Pakistan”.
The increased cost of sugary drinks will encourage consumers to choose healthier alternatives, such as water or unsweetened beverages. This shift towards healthier choices will help to reduce the consumption of liquid sugar and improve the overall health of the population, he added.
According to multiple studies, sugary drinks are the main reasons behind the spread of diabetic diseases. Moreover, it is also a major factor behind obesity and the prevalence of obesity is at epidemic proportions in Pakistan, calling for urgent lifestyle intervention strategies to prevent and manage this important cardio-metabolic risk factor. A study done based on the National Diabetes Survey 2016-17 by using World Health Organization (WHO) Asia Pacific cut-offs revealed shocking results. Overall, weighted prevalence of generalised obesity was 57.9 percent (42 per cent in males and 58 per cent in females) and central obesity 73.1 percent (37.3 per cent in males and 62.7 per cent in females). The highest prevalence of generalised obesity was found in Punjab 60 percent, followed by Khyber-Pakhtunkhwa 59.2 percent. Moreover, the highest prevalence of abdominal obesity was observed in Balochistan 82.1 percent, followed by Punjab 73.3 percent. Obesity (generalised and abdominal) was found significantly associated with diabetes, hypertension, and dyslipidemia. These are terrifying statistics throughout the country. To put an end to the spiraling obesity crisis that seems to be going out of control, the government must take all possible measure to reduce the further damage done.
Sana Ullah Ghumman, general secretary Pakistan National Heart Association (PANAH) said that in recent years, the issue of obesity has become a major health crisis in Pakistan, with a growing number of people suffering from obesity-related diseases such as heart disease, diabetes, and cancer. The considerable volume of research suggests that sugary drinks have become among the major contributor to the growing obesity and related health problems such as Type 2 diabetes in Pakistan. Average sugary drink of 500 ml contains 12 to 17 teaspoons of sugar. People who consume sugary drinks regularly have a 30 percent higher risk of developing Type 2 diabetes.
He said that since the government of Pakistan is negotiating several measures with the International Monetary Fund (IMF) to overcome economic challenges, it is important to prioritise interventions which could help cut expenses and also generate revenue to meet the shortfall. He said that “taxing sugary drinks is an evidence-based intervention to reduce the health care expenditures and generating significant revenue for Pakistan. More than 80 countries around the world have already imposed taxes and the impact is promising”.
Munawar Hussain, consultant Food Policy Program at Global Health Advocacy Incubator said the research studies in the past had indicated a huge potential to reduce health expenditure and generate revenue by taxing sugary drinks in Pakistan. He said that for example, a study by the World Bank in 2022 revealed that if the government increases 50 percent federal excise duty on all sugary drinks, it will bring an annual health gain of 8,500 disability-adjusted life years (DALYs) along with adding an economic value of $8.9 million to public health and $810 million average annual tax increase in revenue for the next 10 years.
Keeping in view this potential and strategic nature of the intervention, the Pakistan government should increase significant tax (FED or levy) on all types of sugary drinks including sodas, energy drinks, juices, flavoured milk, iced teas etc. Any resistance from the beverage industry on such taxes should be rejected in the best public interest.
Copyright Business Recorder, 2023
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