Study stresses smoking’s impact on public health
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.
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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.