ISLAMABAD: Anti-smoking activists and public health advocates on Thursday welcomed government’s initiative to raise 150 percent Federal Excise Duty (FED) on tobacco products under the Finance (Supplementary) Bill, 2023 and proposed more increase in cigarettes’ prices.
In this connection, the anti-smoking activists on Thursday held a press conference at the National Press Club on the reaction of tobacco taxation through the Finance (Supplementary) Bill, 2023.
They pleaded that the recent surge in taxes on tobacco products is a welcome step but more is needed to be done. Anti-smoking activists have applauded the increase in the tax.
According to the World Health Organisation (WHO), tobacco kills around 166,000 people in Pakistan every year. This number is alarmingly high, and it calls for immediate action to curb the tobacco epidemic in the country, they said.
Dr Hassan Shehzad, from International Islamic University Islamabad (IIUI), said that the reports that smoking-related diseases cost Pakistan over Rs 600 billion need to be verified as new forms of cigarettes have crammed the market.
Increasing taxes on cigarettes is a proven method to reduce tobacco consumption. This measure makes cigarettes more expensive, which can discourage people, especially youth, from smoking, he said.
Public health advocates stated that the government’s initiative to increase taxes by over 150% is one of the most significant tobacco tax hikes in Pakistan’s history. This measure will raise the prices of cigarettes, making them less affordable for young people who are often attracted to smoking due to the low cost.
Health activists, however, call for more. They say that more taxes should be imposed on tobacco products as it would help generate revenue and meet the IMF criterion.
The NGOs have been advocating for an increase in tobacco taxes for a long time. They believe that higher taxes will not only reduce tobacco consumption but also generate revenue for the government. The additional tax revenue can be used to fund anti-smoking campaigns and support smoking cessation programmes. The World Health Organisation (WHO) recommends that tobacco taxes should be at least 75% of the retail price. While the increase in taxes on cigarettes is a welcome move, Pakistan still has a long way to go to reach this goal.
Some may argue that the increase in taxes will lead to a rise in smuggling and the sale of illicit cigarettes. However, this argument does not hold up in the face of evidence. Several studies have shown that higher tobacco taxes lead to a reduction in smoking, and there is no conclusive evidence that increased taxes lead to a rise in smuggling.
Dr Shehzad added that the NGOs and other public health advocates must continue to press for more stringent tobacco control measures to further reduce smoking rates in Pakistan.
Copyright Business Recorder, 2023
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