Islamabad, (Parliament Times) : As Pakistan negotiates fiscal reforms with the International Monetary Fund (IMF), the Pakistan National Heart Association (PANAH) has raised concerns about the growing burden of diseases linked to sugary drink and tobacco consumption. Fiscal policies, such as increasing taxes on sugary drinks and tobacco, are evidence-based strategies to reduce consumption and mitigate the risk factors associated with obesity and chronic diseases like diabetes, stroke, heart disease, and kidney failure. Research consistently shows that higher taxes on sugary drinks and tobacco lead to significant reductions in consumption, resulting in lower disease incidence. Pakistan has the highest prevalence of diabetes worldwide, with over 33 million people living with the disease and another 10 million classified as pre-diabetic in 2021. If no immediate policy action taken, the number of diabetes cases are projected to rise to 62 million by 2045. Studies have established a direct link between sugary drink consumption and chronic illnesses, with sugary drinks alone increasing the risk of diabetes by 30%.
Commenting on some media news, Maj. Gen. (R) Masud Ur Rehman Kiani, President of PANAH, stated: “any effort to lowering taxes on sugary drinks and tobacco contradicts to global best practices and scientific evidence. Over 85 countries have successfully implemented higher taxation on these harmful products to curb consumption and reduce healthcare costs. Pakistan should strengthen its public health measures through fiscal policies rather than reversing critical measures already taken by government of Pakistan.”
Referring a 2022 modeling study conducted by the World Bank in Pakistan he said that increasing the excise tax on sugary drinks by 50% would lead to significant benefits. These include an annual average health gain of 21 Disability-Adjusted Life Years (DALYs) per 10,000 population, an economic value of health impact of USD 7 million, and an increase in tax revenue of USD 51 million. Furthermore, the imposition of a 20% excise duty on sugary drinks in 2023 has already yielded substantial tax revenue gains within the first six months of the 2024-25 fiscal year, providing a boost to Pakistan’s economy.
These findings demonstrate that increasing taxes on sugary drinks can have a dual benefit: improving public health while generating significant economic gains.
Based on available scientific evidence, president PANAH urges the government to increase the federal excise duty on all sugary drinks to 50% of the retail price. Additionally, considering a tax on ultra-processed products such as breakfast cereals, margarines, processed meats, instant noodles, potato chips, candies, ice creams, and ready-to-eat meals could provide potential revenue streams.
Imposing a federal excise duty on these products could help reduce their consumption and the risk factors associated with various diseases. He said that PANAH remains committed to ensuring that public health remains at the forefront of policy decisions and urges the government to take decisive action to combat the growing burden of NCDs in Pakistan.