ISLAMABAD: The experts on Saturday advocated for the implementation of higher taxation and punitive measures to reduce the widespread use of cigarettes for mitigating the negative impact of this item on both the society as well as economy,
During the discussion at a seminar titled “Tobacco Taxation –Light at the End of Health and Poverty Tunnel”, organized by Sustainable Development Policy Institute (SDPI) the experts delved into the health implications, economic consequences, and social challenges associated with cigarette consumption in the country.
The health aspect was a focal point, with discussions centering on the rising incidence of cigarette-related diseases and their burden on the healthcare system. The experts discussed the government’s taxation strategy for the sector and appreciated World Bank’s suggestion of increasing the FED on this item. The World Bank’s latest report ‘Pakistan Development Update’ said that Pakistan collected 0.5 percent of GDP in federal excise duty revenue in fiscal year 2021-22. The taxation of cigarettes was the main contributor to this and accounted for 0.19 percent of GDP, which has remained relatively steady in recent years. A substantial revenue gain of 0.4 percent of GDP could be achieved.
The experts warned that the use of tobacco products was leading to 80 million deaths per year across the low and medium-income countries and over 337,000 people were dying each year in Pakistan due to tobacco borne diseases.
Dr Wasim Iftikhar Janjua from SDPI said that the tobacco industry is building a deceptive narrative about the use of tobacco products to enhance their sales by misleading the youth.
Blanca Llorente, Fundacion Anaas, Colombia, who participated in the discussion via video link, said that from 2010-23, Colombia followed three different tracks: government intervention, local research and civil society’s continuous advocacy for major tax increase on tobacco products. Asif Iqbal, SPDC Executive Director, said every 50 individuals among 1000 use tobacco products and more than 30 million people are tobacco users in the world. In Pakistan, this number is close to 3 million smokers.
Copyright Business Recorder, 2023
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