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Medical experts urge higher taxes on tobacco products

NATC calls for reducing health hazards

NATC calls for reducing health hazards Islamabad May 28, 2021 Islamabad : The National Alliance for Tobacco Control (NATC) has written a letter to Minister for Finance Shaukat Tareen, urging him to increase tax on tobacco products in the upcoming budget to discourage smoking and bring down health cost in the country. In the letter, the alliance’s chairman Professor Javaid Khan requested the finance ministry to increase taxes on cigarettes in the budget to reduce the burden of tobacco-related diseases in the country. He said the federal cabinet approved a health levy in 2019 with Rs10/cigarette tax to discourage smoking in youth and boost the country’s revenue, but for one reason or the other this additional tax was never implemented.

The health cost of tobacco taxation - Newspaper

THE recent report of the Pakistan Institute of Development Economics (PIDE) on the economic cost of tobacco-induced diseases in the country is very shocking. According to the report, the total costs attributable to all smoking-related diseases and deaths in Pakistan for the year 2019 were Rs615.07 billion, or $3.85bn. This amount was five times higher than the overall tax revenue the government generated from the tobacco industry, which was Rs120bn in 2019. Tobacco kills over 166,000 people every year in the country. Despite evidence that higher tobacco taxation discourages tobacco consumption, Pakistan’s tax policy is among the weakest action areas in the country’s fight against tobacco.

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