Staff Reporter
In the wake of the current Covid 19 pandemic, poverty is on the rise in low and middle income countries, especially Pakistan. The current financial crunch has dented the economic prosperity in these countries.
Azhar Saleem, CEO Human Development Foundation (HDF) in a statement on Thursday said an effective strategy for generating revenues from multiple sources can be a win for the government. One of these sources is the Health Levy Bill on cigarettes and sugary drinks. If the government implements this bill, it can open up a new avenue for revenues generation.
The Health Levy Bill was approved by the Cabinet of Pakistan in 2019 and forwarded to Federal Board of Revenue and relevant departments for further processing. In this bill, a surcharge of Rs. 10 was proposed on a pack of 20 cigarettes and Rs 1 per 250 ml of sugary drinks. As a result, up to Rs. 50 to 55 billion could be generated. This amount can take care of over one third of the total health burden being borne by Pakistan.
Representative for Campaign for Tobacco-Free Kids, Malik Imran also spoke on the occasion. He said last year the federal cabinet had approved the health levy on cigarettes and sugary beverages. ‘However, it could not be included in the finance bills of last year and the current year. As per our calculations, the exchequer has faced a loss of at least Rs40 billion from July 2019 to June 2020, he said.
