Experts urge higher tax on cigarettes

In a bid to mitigate the negative impact of cigarettes on both society and the economy, experts advocated for the implementation of higher taxation and punitive measures to reduce the widespread use of cigarettes.

During the discussion at a seminar titled “Tobacco Taxation –Light at the End of Health and Poverty Tunnel”, organised by the 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 revolving around 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 the World Bank’s suggestion of increasing the tax.

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The World Bank’s latest report ‘Pakistan Development Update’ said Pakistan collected 0.5 per cent of GDP in federal excise duty revenue in FY21. Out of this just 0.19 per cent of GDP was recovered from the cigarette industry while it had additional potential to rise up to 4 per cent of GDP.

The experts warned that the use of tobacco products was leading to 80 million deaths per year across low and medium-income countries and over 337,000 people were dying each year in Pakistan due to tobacco-borne diseases.

SDPI visiting faculty Dr Wasim Iftikhar Janjua said the tobacco industry is building a deceptive narrative about the use of tobacco products to enhance their sales by misleading the youth.

Published in The Express Tribune, December 27^th, 2023.