INP-WealthPk

Pakistan’s tobacco industry blamed for evading taxes

September 20, 2022

The recent unofficial increase in the prices of cigarettes in Pakistan will cause losses to the national exchequer, WealthPK reports. Tobacco control experts believe that the unofficial increase of Rs20 in the prices of cigarettes by the tobacco industry will cause a loss of Rs80 billion to the national exchequer. They say that the prices of cigarettes have been increased but the tobacco industry has not declared it to evade taxes. Malik Imran, Country Head for Campaign for Tobacco Free-Kids (CTFK), said that for the first time since 2019, the government increased federal excise duty rates for tobacco products.
“It will provide Rs27.4 billion in additional revenue while resulting in 200,000 fewer smokers; 1.2% reduction in smoking prevalence among adults; 1.23% reduction in smoking intensity among adults; and 71,900 lives saved,” he said.

Malik Imran said that the tobacco industry increased the prices of their cigarette brands, but did not declare it by printing it on the cigarette packs to evade taxes. He said that it would result in a loss of billions of rupees to the national exchequer. Dr. Ziauddin Islam, former head of Tobacco Control Cell, said that the number of smokers in Pakistan reached 29 million. He said that tobacco consumption was causing serious health issues in Pakistanis.
On yearly basis, 170,000 people die due to tobacco consumption. Pakistan became a party to the WHO Framework Convention on Tobacco Control (FCTC) on February 27, 2005. But deceptive tactics of the tobacco industry have not made it possible for Pakistan to improve its tobacco control efforts whereas all its regional neighbours moved forward in this regard.

Society for the Protection of the Rights of the Child (SPARC) has also voiced concerns over the potential damage unleashed by the unofficial increase in process of cigarettes in Pakistan. Khalil Ahmed Dogar, Program Manager of SPARC, said in a press release that every year tobacco industry tried to manipulate policymakers to fill its coffers at expense of the lives of Pakistanis. He said that the country was in a deep financial crisis and it could not afford to lose precious funds on tobacco consumption. He said that the government needed to take effective measures for tobacco control including the imposition of a health levy and strict implementation of tobacco control laws.

“Tobacco control activists are working tirelessly to aid the government in standing firmly against the deceptive campaigns by the tobacco industry,” said the press release received by WealthPK.

Credit: Independent News Pakistan-WealthPk