Moot calls for increased tax on cigarettes

Tax is meant to discourage smokers, prevent related health issues

ISLAMABAD:

Cigarette taxation increase by 50% called for by former Federal Minister for National Health Services, Dr Nadeem Jan, to deter smoking among the population, especially the youth, in consideration of the serious health risks it poses.

Dr Jan stressed the importance of higher taxes as a measure to make cigarettes less accessible and to combat tobacco-related health issues effectively.

During an anti-tobacco awareness session hosted by the Centre for Research and Dialogue and IBC, he critically addressed the cigarette industry's claims that higher taxes would lead to a surge in illicit trade, labelling these assertions as misleading tactics aimed at persuading the government to lower taxes on tobacco products.

Dr Jan pointed out the adverse impact of such misinformation on state revenue and public health. Despite industry pressures, he highlighted the efforts of the health ministry to implement policies to reduce smoking rates in Pakistan.

Dr Jan advocated for the adoption of a single-tier taxation system to replace the current multi-tier system, which was actually influenced by the cigarette industry under the pretext of combating illicit trade.

The introduction of a third tier in 2017 led to a significant drop in government revenue, prompting investigations by the National Accountability Bureau (NAB) and the Senate into the financial losses incurred. The national exchequer suffered a staggering Rs567 billion loss during the last seven years due to various tactics used by the industry and inefficient tax collection.

Reiterating Pakistan's commitment to the Framework Convention on Tobacco Control (FCTC), Dr Jan called for a unified pricing system to simplify regulation and discourage tobacco use.

The Country Head of the Campaign for Tobacco-Free Kids, Malik Imran, also spoke at the session, emphasising the economic burden of tobacco consumption on the country, estimated at an annual loss of Rs615 billion. Imran criticised the tobacco industry's undue influence on government policy and its unfounded warnings against tax increases, which contradict the industry's record-high revenues and the government's doubled revenue from the previous financial year. Both speakers underscored the necessity of stringent regulation and public awareness to counter the tobacco industry's misleading claims and propaganda, including on social media platforms, where they advocated for a significant tax increase on tobacco products as is supported by the World Bank's findings.