Experts in Pakistan Call for Cigarette Industry Reforms

Web DeskMay 15, 2024 01:59 PMbusiness
  • IMF urges restrictions on tax incentives for economic benefits
  • Capital Calling stresses tax reforms in cigarette industry
  • Dr. Zaman endorses uniform tax on cigarettes to reduce consumption
Experts in Pakistan Call for Cigarette Industry ReformsImage Credits: Business Recorder
Experts in Pakistan advocate for reforms in the cigarette manufacturing sector to address economic impact and public health concerns. Recommendations include uniform taxes and price mechanisms to reduce tobacco consumption and improve public health outcomes.

Researchers and experts in Pakistan have highlighted the pressing need for reforms in the cigarette manufacturing sector, which currently has a minimal impact on the country's economy. The International Monetary Fund (IMF) has called for restrictions on tax incentives, emphasizing the importance of economic benefits outweighing costs to the budget, such as employment generation and value addition.

Capital Calling, a think tank in Islamabad, has stressed the necessity for tax reforms in the cigarette industry, identifying it as a sector requiring immediate attention. Dr. Hassan Shehzad from the International Islamic University Islamabad (IIUI) has pointed out the industry's limited impact on employment generation and economic value addition.

Dr. Muhammad Zaman, the head of Zaman Research Centre (ZRC) at Quaid-i-Azam University (QAU), has highlighted the correlation between tobacco consumption and price, noting that higher prices can deter users. Research indicates that increased tobacco taxes could significantly reduce consumption in South Asia, potentially preventing millions of premature deaths.

Dr. Zaman has endorsed the IMF's proposal for a uniform tax on cigarettes, regardless of their brand origin, as a positive step that should be swiftly implemented. He criticized cigarette companies for resisting higher tobacco taxes, highlighting that Pakistan's cigarette prices are among the lowest in the region.

Emphasizing the health risks associated with smoking, Dr. Zaman has drawn attention to Pakistan's appeal to cigarette manufacturers due to flaws in the tax system identified by the IMF. Addressing these flaws promptly is crucial to mitigating the adverse effects of cigarette consumption on public health.

The call for reforms in the cigarette manufacturing sector in Pakistan is gaining momentum, with experts advocating for measures to address the industry's economic impact and public health concerns. Implementing uniform taxes on cigarettes and curbing tobacco consumption through price mechanisms are seen as vital steps towards improving public health outcomes and reducing premature deaths associated with smoking.

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