By Staff Reporter
ISLAMABAD: Health activists have expressed satisfaction at the government’s decision to double the Federal Excise Duty (FED) on cigarettes.
In a press release shared by the Society for the Protection of the Rights of the Child (SPARC), health activists held that the decision will go a long way in solving Pakistan’s financial woes and recommended the government further to remain steadfast on this decision against tobacco industry’s misinformation campaign.
Malik Imran, country head of Campaign for Tobacco-free Kids (CTFK), expresses his gratitude by thanking the government for increasing FED after an SRO was released on February 14, 2023.
The SRO stated revised taxes on locally-produced cigarettes; FED has doubled on cigarettes (16500/- per 1000 cigarettes if the initial price on the packaging exceeds 9000 per 1000 cigarettes).
FED collection
Imran mentioned that tobacco-induced disease causes an annual economic burden of 615 billion which is 1.6 percent of Pakistan’s GDP. On the other hand, revenue generated from the tobacco industry is 120 billion rupees.
Therefore everyone must appreciate the government’s decision which is in the interest of Pakistan’s health and economy. Subsequently, the government must remain headstrong because, like on previous occasions, the tobacco industry will oppose this decision using false claims of illicit trade and counterfeit products. Listening to their lies will only push us back.
Khalil Ahmed Dogar, Program Manager (SPARC), said that Govt. couldn’t have made a better decision than doubling the FED on Cigarettes. The tobacco industry’s products are deadly, and the harm caused by them should be paid for by the tobacco industry and not by the citizens.
He mentioned that, on average Pakistani smokers spend 10 percent of their monthly income on cigarettes. Therefore, this increase will make cigarettes go out of reach of low-income citizens and children, thus saving them from harm.
Khalil mentioned that this good step should be something other than a one-time activity. With World Health Organization’s recommendation in consideration, Pakistan should increase taxes regularly so that inflation and per capita income are accounted for.
