ISLAMABAD: Health activists have welcomed the International Monetary Fund’s (IMF) proposals for Pakistan, emphasizing the need to restructure tobacco taxes, local media reported on Friday.
Health activists urged the Pakistani government to develop a Single Tier Tobacco Taxation System, eliminating the second tier. They made the demand during at an event titled “Fueling Economic Growth through Increased Tobacco Taxation,” organized by the Society for the Protection of the Rights of the Child (SPARC). This move is seen as crucial not only for enhancing revenue but also for alleviating the healthcare costs.
Malik Imran Ahmed, Country Head of the Campaign for Tobacco-Free Kids (CTFK) has lauded IMF’s recommendations over tobacco. Imran emphasized the necessity of reforming Pakistan’s cigarette taxation system. He further said that it is a pressing public health issue in the country
“Despite significant taxes on cigarettes, the revenue generated falls short of covering healthcare costs suffered due to smoking-related illnesses,” he noted.
Dr. Khalil Ahmad Dogar, Program Manager highlighted the alarming prevalence of tobacco use in Pakistan. He said that smoking-related illnesses contribute to over 160,000 deaths annually, amounting to a significant 1.6% of the nation’s GDP each year.
Dr. Khalil emphasized the urgent need for immediate action to bridge the gap between tobacco tax revenue and healthcare costs. He advocated for adopting a Single Tier Tobacco Taxation System, as recommended by the IMF, to not only enhance revenue but also alleviate the health and economic burdens associated with tobacco consumption.
