Islamabad Pakistan: A recent seminar organized by the Sustainable Development Policy Institute (SDPI) highlighted the urgent need for Pakistan to adopt a comprehensive and sustainable tobacco taxation policy.
Key Points:
- Weak Current System: The current two-tiered taxation system is ineffective and allows the tobacco industry to manipulate prices to maintain affordability.
- Need for Unified Framework: Experts advocate for a unified taxation framework that covers all tobacco products, including smokeless tobacco.
- Global Best Practices: The seminar stressed the importance of aligning Pakistan’s tobacco tax policy with the World Health Organization’s (WHO) Framework Convention on Tobacco Control (FCTC).
- Health and Economic Benefits: Strong tobacco taxation can significantly reduce tobacco consumption, improve public health, and generate substantial revenue for the government.
- Addressing Industry Interference: The seminar highlighted the need to counter industry tactics, such as pre-emptive price hikes, to ensure the effectiveness of tax measures.
Recommendations:
- Implement a Minimum Tax Price: A minimum tax price can help prevent price reductions and ensure that taxes remain effective.
- Regular Tax Adjustments: Regular adjustments to taxes are crucial to keep pace with inflation and maintain the effectiveness of the tax policy.
- Strengthen Enforcement: Strict enforcement of tax laws and regulations is essential to curb tax evasion and illicit trade.
- Invest in Public Health: Increased tax revenue from tobacco can be used to fund public health programs, including tobacco control initiatives.
By implementing these recommendations, Pakistan can significantly reduce tobacco consumption, improve public health, and generate substantial revenue for the government.
