Soon ‘Sin tax’ on tobacco, sugary beverages in Pakistan

Soon ‘Sin tax’ on tobacco, sugary beverages in Pakistan

Agency News

Islamabad, Dec 5: A bad news is in store for consumers of tobacco products and sugary beverages in Pakistan with the government mulling to introduce ‘sin tax’on the two items.

Addressing a public health conference at the Health Services Academy on Tuesday, Minister for National Health Services (NHS) Aamer Mehmood Kiani said that the PTI government was committed to increasing the health budget by five per cent of GDP, a report in Dawn said.

“We have not yet decided on the exact amount for a sin tax [in Pakistan],” he clarified, “but it will certainly be a handsome sum. Because of the new tax, the price of cigarettes will increase, making it more difficult for young people to buy them. Some 1,500 youngsters start smoking in Pakistan every day, and we want to reduce that number.”

“Various routes will be used to increase the health budget,” he maintained, “and one of them is imposing a sin tax on tobacco products and sugary beverages. That sum will be diverted to the health budget.”

Currently, the government spends a mere 0.6pc of GDP on health. It has been suggested several times in the past that sin taxes be imposed on products that cause health-related issues as a result of which the state pays heavy penalties in the shape of healthcare spending and lowered human productivity.

Director general of the NHS Ministry Dr Asad Hafeez said that tax on tobacco and sugary beverages was being charged in some 45 countries.

“A sin tax is an internationally recognised term and is specifically levied on certain goods deemed harmful to society, for example tobacco, candies, soft drinks, fast foods, coffee and sugar,” he said.

“The United States charges about $1.5 (approximately Rs200) per pack of cigarettes, while the UK charges 40 pence (around Rs100) per litre of sugary beverages as sin tax. Thailand, as well as a number of other countries, has similar taxes that are earmarked for healthcare services.”

India imposes a sin tax on gutka and paan masala, and the sums thus collected are spent on the healthcare sector since these products cause illnesses that become a burden on the public exchequer, Dr Hafeez explained replying to a question, the report said.

Sanaullah Ghumman, general secretary of the Pakistan National Heart Association (PANAH), said his association had been demanding imposition of a sin tax for many years.

“Recently, during a meeting with President Dr Arif Alvi, we again raised the issue of such a tax,” he elaborated.

According to a report of the NHS Ministry that was published a few years ago, tobacco is the single largest cause of preventable illness and death. In Pakistan, it causes some 108,800 fatalities every year, ie 298 per day.

The report emphasises that the consumption of tobacco will continually increase the country’s healthcare expenses, in addition to imposing huge costs in terms of human resource. (UNI)