The pervasive influence of Pakistan’s cigarette industry on policymaking has exacted a toll on both the nation’s financial well-being and public health but also caused a staggering Rs567 billion loss in revenue over the last decade.
The alarming loss of revenue was unearthed through a comprehensive study delving into the dynamics of the cigarette sector and scrutinising Federal Board of Revenue (FBR) data, said a statement issued by the Sustainable Development Policy Institute (SDPI) Sunday.
The WHO estimates that over 8 million people die each year globally due to tobacco use, with Pakistan recording an estimated 135.14 deaths per 100,000 people in 2019 totalling approximately 337,500.
Read Tobacco harm reduction strategies urged
According to a study by the Pakistan Institute of Development Economics (PIDE), the total costs attributable to smoking-related diseases and deaths in Pakistan for 2019 reached an additional Rs615.07 billion ($3.85 billion), with indirect costs (morbidity and mortality) making up 70% of the total cost.
However, the cigarette industry managed to influence decision-making, which not only resulted in a Rs567 billion loss in potential revenue but also put an extra burden on the country’s fragile healthcare system.
In its report titled “Pakistan: Overview of Tobacco Use, Tobacco Control Legislation, and Taxation”, the World Bank has also revealed the decline in revenue in the 2016-2017 fiscal year was carefully planned by the powerful cigarette industry.
The study brings attention to the influence of the introduction of a three-tier excise duty structure, raising concerns about tax evasion and its adverse effects on public health.
Published in The Express Tribune, January 8th, 2024.
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