Over 220 billion revenue anticipated due to increased Federal Excise Duty on cigarettes

Over 220 billion revenue anticipated due to increased Federal Excise Duty on cigarettesOver 220 billion revenue anticipated due to increased Federal Excise Duty on cigarettes

Islamabad – imrana Komal

Health professionals and advocates have united in support of the Pakistani government’s move to raise tobacco taxes, a decision implemented in early 2023. Society for the Protection of the Rights of the Child (SPARC) deamands and highlighting the positive outcomes resulting from the rise in cigarette taxes. Health advocates attribute this progress to the government’s prudent decisions and strong determination.

Malik Imran Ahmad, the Country Head of the Campaign for Tobacco-Free Kids (CTFK), shared that this year, the increased Federal Excise Duty on cigarettes is projected to result in the national treasury generating around Rs. 220 billion in revenue. The potential economic benefits resulting from heightened tobacco taxation are substantial. This move stands to significantly benefit Pakistan by augmenting government revenue and simultaneously shielding the youth from tobacco-related hazards through the maintenance of elevated cigarette prices. By tapping into this augmented revenue stream, Pakistan can channel resources into essential sectors, including healthcare, education, and infrastructure development. Furthermore, a healthier populace contributes to a more productive workforce, thereby fostering greater economic growth and stability.

Dr. Ziauddin Islam, Former Technical Head of the Tobacco Control Cell at the Ministry of Health, emphasized the necessity for annual revisions in cigarette taxes to uphold Pakistan’s international commitments regarding tobacco control. The supplementary revenue generated through heightened taxes will play a pivotal role in addressing both present and future economic challenges within the nation. The adverse health consequences associated with cigarette smoking are linked to numerous non-communicable diseases. Implementing this incremental tax increase on an annual basis can serve as an effective strategy to safeguard the well-being of the populace by rendering cigarettes more expensive, thus alleviating the strain on the healthcare system.

Khalil Ahmed Dogar, Program Manager SPARC, voiced his support for the government’s decision to raise taxes on cigarettes and expressed optimism about the future of Pakistan’s youth and economy. He pointed out that this tax increase has brought Pakistan in line with international standards, and with sustained efforts, the country can shield both present and future generations from the harmful effects of tobacco. Khalil added that as the world grapples with health challenges exacerbated by tobacco use, Pakistan has a unique opportunity to lead by example. By heeding the call for increased tobacco taxation, the government can pave the way for a healthier population, a stronger economy, and a brighter future for all.