Islamabad, (Parliament Times) : The Society for the Protection of the Rights of the Child (SPARC) organized an online discussion to stress on the need of increased taxation on tobacco products to provide the required relief to Pakistan’s struggling economy.
Mr. Khalil Ahmed Dogar, Program Manager, SPARC said that in order to sail through the current economic situation, Pakistan should look to tap in revenue generation opportunities and look to cut down the avoidable costs. Both these can be done with a single decision i.e. is to increase taxation on tobacco products. He stated that in Pakistan, the number of smokers has reached up to 29 million many of whom have become victims of cancer, diabetes, heart diseases, stroke, and chronic lung diseases. These are collectively responsible for almost 68% of all deaths in Pakistan as 170,000 people die every year that means 466 people die every day due to tobacco use. Such hazardous items should be heavily taxed to keep them out of reach of lower incomed groups and children. However in Pakistan, tobacco products are being sold at lower rates compared to other countries in the region.
Mr. Khalil Ahmed Dogar further added that the children of Pakistan are being targeted by the tobacco industry so that “replacement smokers” could be recruited. Around 1200 Pakistani children between the ages of 6-15 years start smoking every day. Increasing tobacco taxes will bring this number down.
Malik Imran Ahmed, Country Head Campaign for Tobacco Free Kids (CTFK) highlighted that the use of tobacco causes annual an economic burden of 615 billion which is 1.6% of Pakistan’s GDP. On the other hand, the revenue generated from the tobacco industry is 120 billion. It is astonishing that while prices of all essential items have risen exponentially in last 3 years, tobacco industry keeps benefitting from the relaxed taxation policy. Since tobacco products are the source of damage, the tobacco industry should pay for the loss instead of others.
Mr. Shariq Mahmood Khan, CEO Chromatic Trust, said that imposing higher tobacco taxes will help Pakistan improve its international standing. World Health Organization has repeatedly recommended Pakistan to increase Federal Excise Duty on tobacco products by 30%. Tobacco taxes are the most cost-effective tobacco control measure. Evidence suggests that higher cigarette taxes deter smoking initiation, reduce cigarette consumption, and even lead smokers to quit. It’s a golden opportunity for the govt. to generate revenue, to provide remedy to the people, and to increase Pakistan’s international prestige.