INP-WealthPk

Health levy on tobacco products can boost revenue

July 27, 2022

ISLAMABAD, July 20: Health experts have urged the government to impose health levy on tobacco products to save lives as well as generate additional Rs50 billion in revenue annually .

In a joint press statement by Society for Protection of Rights of the Child (SPARC), experts recommended that the government take this urgent step, which has been pending since June 2019.

Malik Imran Ahmed, Country head, Campaign for Tobacco Free Kids, said that in June 2019, the federal cabinet decided to implement health levy on tobacco products to protect the health of low-income groups and children by taking tobacco products out of their spending reach.

He said that tobacco use is the leading cause of death due to non-communicable diseases such as cancer, chronic respiratory diseases, and cardiovascular disease.

Khalil Ahmed Dogar, Program Manager, SPARC, said that children and low-income people are primary targets of the tobacco industry and unfortunately, Pakistan’s tobacco control policies are making these groups more vulnerable. Quoting a research by SPDC, Khalil said that the average increase of 10.8% in excise tax on cigarettes in Finance Bill 2022-23 is even lower than the 13.3% increase in inflation, which will make cigarettes more affordable to people than two years back.

Shariq Ahmed, CEO, Chromatic Trust, stated that the country is facing a severe economic crisis and the threat of COVID-19 pandemic still persists. Pakistan cannot afford to lose any more precious lives and money fighting the plague of tobacco. The government needs to remain steadfast to overcome any challenges thrown by big tobacco companies.

Credits: INP-WealthPk