Zafar hails levying health tax on tobacco products, sugar drinks

ISLAMABAD: Special Assistant to Prime Minister for National Health Services, Regulations and Coordination Dr Zafar Mirza has termed the decision of federal cabinet of levying health tax on tobacco products and sugary drinks as unprecedented and historic.

In a statement, Dr Zafar said that in order to discourage cigarette smoking, increasing revenues and saving money by reducing tobacco-related health care costs, health Levy on cigarettes at the rate of ten rupees per pack of twenty cigarette sticks had been proposed by Ministry of National Health Services, along with increase in Federal Excise Duty on cigarettes.

Terming the introduction of health tax as a big win for the people he said the measure would have far reaching impact on their health and well being and is reflective of our resolve as a nation to take a bold step forward and accord high priority to health over any other consideration.

He said that tobacco was the biggest killer causing death of around 160,189 persons in Pakistan every year.  Almost 15.6 million adults currently smoke tobacco in the country whereas around 1200 Pakistani children between age of six and 15 start smoking every day.

He added the economic cost of smoking amounts to 143.208 billion rupees. This included direct costs related to healthcare expenditures and indirect costs related to lost productivity due to early mortality and morbidity.

He said that the levy of health tax on sugary drinks aims to discourage their excessive use to control the burden and complications of Non Communicable Diseases specifically diabetes.

He said that the tax was proposed to be levied at the rate of one rupee per two hundred and fifty milliliter.

He added the revenue collected through levy of health tax is proposed to be earmarked for federal health budget including Prime Minister Health Program and Health Promotion.