Health Advocates Urge Immediate Implementation of Cigarette Tax Hike for Pakistan’s Youth In a recent call to action, health-focused advocates have urged for the swift implementation of an increased Federal Excise Duty (FED) on cigarettes in Pakistan. This appeal, aligning with the World Bank’s recommendations, aims to ensure a healthier and brighter future for the nation’s youth.
Social workers and health experts highlighted the urgent need for this move, emphasizing that an elevated FED on cigarettes not only acts as a deterrent to tobacco consumption but also serves as a crucial revenue source for essential public services. The Society for the Protection of the Rights of the Child (SPARC) echoed these sentiments during a press release, with key figures like Imran Ahmed, the Country Director for the Campaign for Tobacco-Free Kids, and Khalil Ahmed Dogar, SPARC’s Program Manager, emphasizing the significant impact this implementation could have on Pakistan’s youth.
Imran Ahmed referred to the latest World Bank report, “Pakistan Development Update,” revealing the potential for a 0.4% increase in GDP revenue through taxation by aligning premium cigarette rates with standard categories. The report underscored the economic and health-related benefits that could stem from this initiative.
However, it was noted that Pakistan’s current collection of Federal Excise Duty on cigarettes falls below expected levels, with only 0.5% of GDP derived from this source during fiscal year 21, reflecting a stagnant tax rate of 0.19% of GDP in recent months.
Health Advocates Urge Immediate Implementation of Cigarette Tax Hike for Pakistan’s Youth Advocates stressed that implementing the World Bank’s recommended tax adjustment would not only discourage tobacco use but also bolster essential public services. Khalil Ahmed Dogar emphasized the necessity for the government’s full endorsement of this action, citing its potential to significantly increase financial resources and improve public health outcomes, thereby securing a safer and happier future for Pakistan’s children.
This move aligns with SPARC’s viewpoint on the dual tax system currently in place for cigarettes in Pakistan. Advocates highlighted that adopting the World Bank’s suggestions could notably enhance revenue, providing impetus for immediate action to address this critical issue.
Health Advocates Urge Immediate Implementation of Cigarette Tax Hike for Pakistan’s Youth
World Bank Recommendation Emphasizes Healthier Future and Vital Revenue Boost through Increased Excise Duty on Tobacco
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