Zubair Qureshi
In the backdrop of the initiative taken by Senator Muhammad Ali Khan Saif and Senator Kulsoom Parveen who submitted their recommendations to the Senate urging the government to increase Federal Excise Duty (FED) and implement a surcharge on tobacco products, the tobacco control advocates have called upon the government to endorse their recommendations and enhance duties on tobacco products.
While speaking at an online media session Azhar Saleem, CEO Human Development Foundation (HDF) appreciated the steps taken by the government for tobacco control mentioning that the government did not succumb to the pressure from tobacco industry and retained the two-tier structure for tobacco taxation.
He said the government stayed true to its commitment of keeping public health a priority, which is good and will go a long way in the protecting our youth from menace of tobacco and reduce burden on our health system.
The participants of the webinar proposed recommendations on Finance Bill 2020 asking the government to increase FED on the top tier up to Rs30 which captures 10% of the market share with less competition.
The lower tier comprises of 90% of the market share. The recommendations also suggest an increase in the prices of lower tier cigarettes which currently stands at Rs. 80. It was suggested to increase the prices of lower tier cigarettes up to Rs. 100 by adding a Rs. 10 duty/pack of cigarettes.
Quoting the study “Economic Burden of Smoking Related Illnesses in Pakistan” conducted in 2018, Malik Imran, country representative of Campaign for Tobacco Free Kids (CTFK), stated the current economic cost of tobacco consumption is Rs. 192 billion. Approximately, 166,000 deaths occur in a year due to tobacco use.
