Increase Taxes on Tobacco Products instead of Utility Charges
Published on: March 3, 2024.
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SPARC Highlights Pakistan’s Significant Burden of Tobacco Use
In a recent press release, the Society for the Protection of the Rights of the Child (SPARC) shed light on the alarming impact of tobacco use in Pakistan, both in terms of public health and economic costs. It emphasized the need for the government to prioritize increasing taxes on cigarettes rather than on utilities such as electricity and gas. By doing so, the health cost burden and economic crisis caused by tobacco use can be reduced.
According to Malik Imran Ahmad, the Country Head of the Campaign for Tobacco-Free Kids (CTFK), Pakistan faces a daunting challenge in combating tobacco use. He presented statistics that revealed a high prevalence of tobacco consumption among adults in the country. Approximately 31.9 million adults, accounting for about 19.7% of the adult population, consume tobacco products.
Furthermore, tobacco-related illnesses, including cancer, diabetes, and heart diseases, contribute to over 160,000 deaths in Pakistan each year. These deaths have far-reaching consequences, impacting not only individuals but also families, communities, and the healthcare system as a whole.
To address this issue, Malik Imran proposed a 30% increase in Federal Excise Duty (FED) in 2024, which could recover 19.8% of the costs associated with tobacco-related health burdens. This tax proposal is a win-win solution, benefiting both the government and the people of Pakistan in terms of health and revenue. Additionally, the implementation of a track and trace system for cigarettes is expected to curb counterfeiting, combat tax evasion, and ensure accountability.
Dr. Khalil Ahmad, a program manager at SPARC, highlighted the role of low cigarette prices in encouraging children and youth to initiate smoking. He emphasized that smoking-related illnesses and deaths result in significant economic costs, amounting to 1.6% of Pakistan’s GDP annually. These costs include healthcare expenses, productivity losses due to illness and premature death, and other indirect economic impacts.
Dr. Khalil Ahmad emphasized the need for comprehensive strategies to tackle the tobacco epidemic, including public health interventions, strong tobacco control policies, and awareness campaigns.
By addressing tobacco use, Pakistan can mitigate the economic losses associated with smoking-related illnesses, alleviate the burden on its healthcare system, and protect the well-being of its youth.
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