SPARC Urges Higher Tobacco Taxation in Pakistan

In a recent briefing session led by the Society for the Protection of the Rights of the Child (SPARC), a pressing issue regarding the need for higher taxation on cigarettes in Pakistan was underscored. Various organizations, including SPARC, have urged the Finance Ministry to consider raising tobacco taxes by a minimum of 26% in the upcoming federal budget. This call to action is driven by concerning statistics surrounding tobacco use in the country.

Pakistan faces a significant challenge with over 31.9 million adults, nearly 19.7% of the adult population, identified as current tobacco users. The consequences of smoking are severe, with more than 160,000 lives lost annually to smoking-related illnesses, equating to 1.6% of the nation's GDP each year. Despite these alarming figures, cigarette taxes in the fiscal year 2022-23 only covered 16% of the associated expenses, indicating a decline from previous years.

Dr. Khalil Ahmad, Program Manager at SPARC, emphasized the critical need to address the affordability of cigarettes and the harmful effects of smoking on public health. Accessible cigarettes can lure more individuals, especially youth and those with limited financial means, to start or continue the habit despite the well-known health risks. The loss of innocent lives due to smoking-related illnesses is both heartbreaking and preventable.

Efforts to reduce tobacco consumption should encompass a holistic approach, including not just taxation but also public awareness campaigns, smoke-free regulations, and assistance for smoking cessation programs. Malik Imran Ahmad, Country Head of Campaign for Tobacco-Free Kids (CTFK), stressed that increasing tobacco taxes, aligning with recommendations from global health bodies like WHO and the World Bank, can effectively lower consumption rates and generate revenue for healthcare.

The proposed 26.6% rise in Federal Excise Duty (FED) for the fiscal year 2024-25 is viewed as a significant step forward. This measure aims not only to offset a substantial portion of healthcare expenses but also has the potential to dissuade hundreds of thousands of individuals from smoking. The expected increase in revenue could play a pivotal role in funding public health initiatives and strengthening the national economy.

The push for higher tobacco taxes in Pakistan is a crucial step towards combating the devastating impact of smoking on public health and the economy. By implementing these measures, the country can work towards reducing tobacco consumption, saving lives, and allocating resources to vital healthcare services. It is imperative for policymakers to prioritize the well-being of citizens and take decisive action to create a healthier, smoke-free future for Pakistan.