Tobacco Health Levy: A sustainable option to revive Pakistan’s economy

Islamabad(Imrana komal)

Health activists have urged the government to take sustainable steps such as implementing health levy on tobacco products to meet the criteria set by International Monitory Fund (IMF). In a press release shared by Society for the Protection of the Rights of the Child (SPARC), health activists dubbed Tobacco Health Levy as a Profitable and Sustainable option to solve Pakistan’s financial woes and recommended government to take this route instead of taxing essential commodities.

Malik Imran Ahmed, Country head, Campaign for Tobacco Free Kids, mentioned that government has repeatedly said that it has to take harsh decisions in order to fill the state’s coffers and meet IMF’s requirement. However there’s one area where increasing taxation is logical and beneficial and that’s tobacco sector.
Malik Imran mentioned that tobacco induced disease 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. When a product is causing this much health loss, a levy must be implemented on it. Pakistan moved in this direction in 2019 by tabling a tobacco health levy bill but it hasn’t seen the light of the day due to continuous interference of tobacco industry.

Dr. Ziauddin Islam, Former Technical Head, Tobacco Control Cell, Ministry of Health, said tobacco products are non-essential and hazardous items which cause 170,000 deaths every year in Pakistan. On an average, Pakistani smokers spend 10% of their average monthly income on cigarettes. Due to cheap and easy affordability nearly 1200 children begin smoking every day in the country. A struggling economy such as Pakistan can’t afford this much loss of precious human and finance resources. Instead of taxing essential items which will raise inflation, government should impose health levy in addition to increase existing FED on tobacco products that are the major source of our health woes, and to reduce mortality and morbidity of tobacco related.

Khalil Ahmed Dogar, Program Manager, SPARC, stated that this challenging financial situation requires sustainable measures. Pakistan is seeking foreign aid to rescue its citizens from financial disaster. Therefore the government should take those decisions which can benefit the health and wealth of the public. One-time measures will bring us back to square one and we will have to ask for foreign aid again. Instead it is important to take decisions which can reap long-term benefits. This include increasing implementing health levy on tobacco products and sugary drinks. These steps will generate us much needed revenue and save healthcare costs which will also help the national exchequer.