Pakistan to slap health tax on cigarettes

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By Muhammad Luqman
Pakistan,s government has decided to impose health tax on cigarettes to make tobacco consumption an expensive activity in the country where atleast 1200 children aged 15 years and above start smoking every day.
” We are imposition a tax of Rs 20 on every packet of 20 cigarette sticks in order to cut rising tobacco consumption and increase revenue,” Special Assistant to Prime Minister on National Health Services, Dr. Zafar Mirza told mediamen in the capital, Islamabad.
Dr. Mirza also announced the imposition of new tax on sale of sugary drinks which , he said, had been responsible for increasing various diseases especially blood pressure and high cholestrol among Pakistanis.
” Re1 tax will be imposed on a 250ml beverage bottle while the revenue collected from it would be allocated to the health sector for treating the poor and needy people through different programmes, ” he explained the revenue measure being incorporated in the next federal budget.
Reports have revealed that around Rs143.208 billion are spent every year on treatment of tobacco-caused diseases.
Mirza termed the decision of federal cabinet of levying health tax on tobacco products and sugary drinks as unprecedented and historic.
Terming the introduction of health tax as a big win for the people , SAPM said that the measure would have far reaching impact on their health and wellbeing and is reflective of our resolve as a nation to take a bold step forward and accord high priority to health over any other consideration.”
Mirza said that tobacco was the biggest killer causing death of around 160,189 persons in Pakistan every year. Almost 15.6 million adults currently smoke tobacco in the country whereas around 1,200 Pakistani children between age of six and 15 start smoking every day.
SAPM on health added the economic cost of smoking amounts to Rs143.208 billion. This included direct costs related to healthcare expenditures and indirect costs related to lost productivity due to early mortality and morbidity.
He said that the levy of health tax on sugary drinks aims to discourage their excessive use to control the burden and complications of Non Communicable Diseases specifically diabetes.
He added the revenue collected through levy of health tax is proposed to be earmarked for federal health budget including Prime Minister Health Program and Health Promotion.

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