Achi news desk-
Islamabad (Special Correspondent) The monopoly of the cigarette industry in Pakistan, the increase in consumption and the subsequent expenditure on health problems has been continuously increasing over the past few years. In order to deal with these challenges, the IMF has recently offered a school uniform. tax on the tobacco sector.
According to the details, the IMF in its report urged Pakistan to implement a uniform tax on cigarettes, and the report emphasized the need to address health concerns and generate maximum revenue from the sector. This recommendation by the IMF came in the context of a significant reduction in cigarette consumption of 20-25 percent after the increase in taxes on tobacco products.
Health workers have welcomed the IMF’s recommendations while emphasizing the need to restructure tobacco taxes in Pakistan. On the other hand, the Sustainable Development Policy Institute (SDPI) has highlighted inconsistencies in the tax collection framework. SDPI report based on FBR data, Pakistan has lost Rs 567 billion in revenue in the last seven years.
The former Federal Minister for National Health Services, Dr Nadeem Jan has also called for a significant increase in the tax of 50% on tobacco products to prevent consumption, especially among young people, citing serious health concerns. WHO Framework Convention on Tobacco Control Pakistan’s commitment to the Framework Convention on Tobacco Control (FCTC) is to effectively regulate the cigarette industry and set prices to discourage consumption. Underlines the importance of a uniform system. the World (WHO) calls for stricter tax measures to reduce tobacco use.
A 10% increase in tobacco prices reduces overall tobacco consumption by 4% in high-income countries and 8% in low-income countries. According to a study by the Pakistan Institute of Development Economics (PIDE), tobacco It highlights the consequences serious illnesses and deaths related to smoking, which cost 615.07 billion rupees ($3.85 billion) in 2019, equivalent to 1.6 percent of GDP.
The recent decision by the Pakistani government to increase the federal excise tax on cigarettes has led to an increase in income while reducing smoking rates. A World Bank report suggests that applying the current tax rate on premium cigarettes to standard cigarettes could further increase revenue.
Malik Imran Ahmed, Country Head of the Campaign for Tobacco Free Children (CTFK) has said that policy makers should be encouraged to follow the IMF’s recent recommendations and strengthen public health security and financial stability Enact comprehensive tax reforms to
