Call for tobacco tax hike to protect children, public health

ISLAMABAD: Health activists are calling for an immediate increase in tobacco taxes in Pakistan to safeguard the rights and health of children and the general public, warning of a severe public health crisis in the country. 
In a recent press release by the Society for the Protection of the Rights of the Child (SPARC), Malik Imran Ahmed, Country Head of Campaign for Tobacco-Free Kids (CTFK), revealed alarming statistics about tobacco use in Pakistan. 
As per the press release, around 31.6 million adults, which is about 19.9pc of the adult population of Pakistan, are consuming tobacco, while, each year, tobacco-related illnesses cause over 160,000 deaths, placing a significant burden on the healthcare system and costing the fragile economy of the country at least 1.4pc of its GDP.
Mentioning the positive impact of recent Federal Excise Duty (FED) reforms on tobacco, Ahmed says the revenue collections from July 2023 to January 2024 exceeded Rs122 billion, with full-year projections surpassing Rs200 billion. These reforms are expected to generate an additional Rs60 billion in General Sales Tax (GST) from cigarettes for the fiscal year 2023-24, reflecting a substantial growth of nearly 49pc compared to the previous year.
Furthermore, he underscores the importance of these reforms in promoting public health by reducing tobacco consumption and potentially recovering 17.8pc of the total healthcare costs associated with smoking in Pakistan. However, he warned that maintaining the current rate could lead to a decline in health cost recovery, calling for further action.
To sustain the levels of health cost recovery observed in 2023-24, a 37pc increase in the FED rate for the upcoming year is recommended. This tax proposal is seen as a 'win-win' scenario, benefiting both the government and the people of Pakistan by increasing revenue and protecting public health.
Dr. Khalil Ahmad Dogar, Program Manager at SPARC, echoed these concerns, stressing the devastating impact of tobacco use on families, communities, and the economy. He dismissed misconceptions that tax increases would promote illicit trade, pointing out the manipulative tactics used by tobacco companies to influence tax policies and evade taxes.