Tobacco tax

Published April 30, 2021

EASY access to and the low prices of cigarettes and other tobacco products is a key reason why their use is so widespread in the country. There are reportedly at least 30m tobacco consumers in Pakistan, across all ages and social backgrounds; they end up costing the national exchequer at least Rs615bn every year, or 1.6pc of GDP, in terms of the overall toll on the economy and health infrastructure. The habit of smoking alone comprises a massive 8.3pc of the country’s overall health expenditure that is already critically stretched. It is for this very reason that the WHO rightly recommends imposing a tax that is at least 70pc of the retail price of the cigarette packet. However, the lax tax structure in Pakistan enables tobacco companies to sell cigarettes and other products at cheaper rates while still earning huge profits. It is ironic that the tobacco industry only contributes around Rs120bn to the national economy in terms of taxes but extracts a huge toll economically. However, instead of considering options for reducing the health and economic burden of tobacco use and taking steps to launch an aggressive campaign to discourage smoking and the use of other tobacco products, the government appears to be going in the opposite direction.

Recently, the federal health ministry dissolved the Tobacco Control Cell and terminated the services of its staff. The cell had been set up in 2007 to take steps for discouraging the use of tobacco products in the country. Even more surprising is the fact that the decision to disband the TCC was taken ahead of World Tobacco Day, observed every year in May. Whatever the reason for this strange decision, it will surely appear to observers that Pakistani policymakers are more sympathetic to the concerns of the tobacco giants than about the health of the population. The authorities may want to revise their decision in line with international guidelines regarding tobacco use and industries in the interest of public health.

Published in Dawn, April 30th, 2021

Opinion

Editorial

Military option
Updated 21 Nov, 2024

Military option

While restoring peace is essential, addressing Balochistan’s socioeconomic deprivation is equally important.
HIV/AIDS disaster
21 Nov, 2024

HIV/AIDS disaster

A TORTUROUS sense of déjà vu is attached to the latest health fiasco at Multan’s Nishtar Hospital. The largest...
Dubious pardon
21 Nov, 2024

Dubious pardon

IT is disturbing how a crime as grave as custodial death has culminated in an out-of-court ‘settlement’. The...
Islamabad protest
Updated 20 Nov, 2024

Islamabad protest

As Nov 24 draws nearer, both the PTI and the Islamabad administration must remain wary and keep within the limits of reason and the law.
PIA uncertainty
20 Nov, 2024

PIA uncertainty

THE failed attempt to privatise the national flag carrier late last month has led to a fierce debate around the...
T20 disappointment
20 Nov, 2024

T20 disappointment

AFTER experiencing the historic high of the One-day International series triumph against Australia, Pakistan came...