Islamabad, (Parliament Times) : The Society for the Protection of the Rights of the Child (SPARC) shared a press release on the need of increasing Federal Excise Duty (FED) – a decision which can provide immediate relief to the citizens on essential commodities.
Khalil Ahmed Dogar, Program Manager, SPARC said that tobacco control should be a key priority area for the government for 2022-23 budget. 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 due to tobacco use. This consumption causes an annual 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. Khalil stated that Pakistan’s economy has suffered due to coronavirus pandemic and global political situation, therefore it is important that government increases on tobacco products tax to make them less affordable.
Imran Malik Iman, Country Head, Campaign for Tobacco Free Kids (CTFK) mentioned that cigarette prices in Pakistan are the lowest among the region mainly because Federal Excise Duty (FED) on cigarettes has not increased since July 2019. Such key decision which has huge implications on health and economy should have been taken on basis of scientific research rather than data provided by tobacco industry. Quoting research by Social Policy and Development Centre (SPDC), Mr. Imran stated that in order to meet the international standard, Pakistan should increase FED by 30%. According SPDC’s research, 30% increase in FED would result in 200,000 fewer smokers and an increase of more than Rupees 27 billion in excise tax revenue. Additionally government must ensuring that inflation is automatically adjusted in the prices.
Shariq Mahmood Khan, CEO, Chromatic Trust, said that imposing higher federal excise duty will help Pakistan improve its international standing. Tobacco consumption has direct consequences on a country’s performance on SDGs on poverty, health, education and economic growth. Therefore it is important that government takes this much needed step required to provide remedy to the people, and to increase Pakistan’s international prestige.