In Pakistan, inertia over proposed new tobacco tax disappoints and raises questions

While the Pakistani federal office had declared in June 2019 its intention to introduce a new tax on tobacco products in order to make them too expensive for children, this has still not been introduced almost a year and a half later.

On November 14, 2020, a policy seminar on tobacco taxation was held in Pakistan, organized by the Society for the Protection of the Rights of the Child[1] (SPARC). On this occasion, Sajjad Ahmed Cheema, Director General of SPARC, recalled that the country's federal office had announced in June 2019 a draft law providing for the creation of a new health tax on tobacco[2], which is supposed to increase the price of tobacco products and make them unaffordable for the most disadvantaged populations and children in the country[3].

At this seminar, several organizations, including SPARC, deplored the fact that, almost a year and a half after this announcement, this bill, which has been the subject of numerous back-and-forths between the federal office, the Ministry of Health and the Ministry of Finance, has still not resulted in the establishment of a tax on tobacco.4].

An inertia that gives rise to disappointment and questioning

Many participants in this seminar on tobacco taxation expressed their disappointment and distress at the inertia surrounding this bill, proof according to them "that public health is not a priority for [their] government"[5].

Questions have also been raised about the causes of this inertia. Malik Imran Ahmad, director of the Pakistani committee of the organization Campaign for Tobacco Free Kids[6] (CTFK), thus requested that an investigation be conducted "to determine why the decision of the federal cabinet to impose a health tax on tobacco could not be implemented"[7He also directly questioned the Pakistani Prime Minister, Imran Khan, on this subject.

While the causes behind this stagnation are likely multiple, one of them could be linked to the political organization of the country. Indeed, Pakistan is a federal republic composed of several provinces that have a certain autonomy in several areas, including health. Thus, the Business Recorder, a daily economic and financial news newspaper, claims that the Federal Board of Revenue, the body responsible for formulating and administering tax policies as well as collecting and levying federal taxes in Pakistan, has declared this health tax illegal because "health is a provincial subject and the federation cannot levy a health tax on tobacco consumption"[8].

"Tobacco use is not just a health issue"

For all the participants of the November 14 seminar, "tobacco consumption is not only a health issue" in Pakistan. It also has "serious repercussions on poverty and economic stability, as well as on development, education and child labor."9].

Muhammad Ali Saif, a lawyer and senator, also said that smokers spend an average of 10,130 of their monthly income on cigarettes, adding that "when people spend their income on tobacco products, they have less money available for essential areas such as nutrition and children's education."10]. In this sense, he recalled that "increasing tobacco taxes [was] a proven policy to help reduce tobacco consumption in line with the recommendations of the World Health Organization."

For information purposes, the loss of revenue resulting from the significant delay in the implementation of this new health tax – which must apply to tobacco products but also to sugary drinks – is estimated at 55 billion rupees (around 293 million euros)[11]. A sum that could be used to develop the country's health facilities.

©Tobacco Free Generation

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[1] Society for the Protection of Children's Rights. [2] Govt decision to impose health tax hailed, The News (June 1, 2019, accessed November 19, 2020). [3] Tariq Ullah Wardak, PM must intervene to impose health levy on Cigarettes, Daily Times (November 14, 2020, accessed November 19, 2020). [4] Ibid. [5] Ibid. [6] Campaign for tobacco-free children. [7] Tariq Ullah Wardak, PM must intervene to impose health levy on Cigarettes, Daily Times (November 14, 2020, accessed November 19, 2020). [8] Sohail Sarfraz, 'Centre can't impose health tax on tobacco consumption', Business Recorder (November 11, 2020, accessed November 19, 2020) [9] Tariq Ullah Wardak, PM must intervene to impose health levy on Cigarettes, Daily Times (November 14, 2020, accessed November 19, 2020). [10] Ibid. [11] Ibid. DNF - For a Zero Tobacco World |