Tobacco taxation- Global best practice to protect children from becoming smokers

Islamabad: Society for the Protection of the Rights of the Child (SPARC) shared a Press Release on tobacco taxation.There has been no change in tobacco taxation during the past 03 years. It is high time govt must consider revamping tobacco taxation as increasing taxes on tobacco is a global practice to protect children from becoming smokers. 

Country Head of Campaign for Tobacco-Free Kids, Malik Imran Ahmed told media that cigarette taxation in Pakistan is among the weakest in the world, and this makes them inexpensive for youth. World Banks recommendations of 30 rupees increase in tax, the absence of tax increase means more profits to the tobacco industry or less cost to the consumer leading to more consumption.

He further said that globally countries have high excise taxes including, GST or sales tax to protect children from initiating smoking. International literature recognizes tax increase as one of the most cost-effective tools to regulate the consumption of tobacco use. He suggested the government revise tobacco taxation aiming for a significant increase in tax on cigarettes and smokeless tobacco products in the 2022 -2023 budget proposals. According to WHO tobacco kills half of its users and make others victims of NCDs. By imposing 30% FED on tobacco will help to reduce the demand, he added. 

Khalil Ahmed Dogar, Program Manager SPARC told the media that already due to affordability and easy availability, the number of smokers has reached up to 29 million, including 1200 children who initiate smoking daily, and 170,000 people die yearly due to tobacco consumption.

Tobacco and related industries have increasingly preyed on children and adolescents, engaging in advertising tactics like sponsorships and influencer marketing to target them directly that threaten their health. It is advisable to revise tobacco taxes to keep them out of reach of children. 23 million children are out of school in Pakistan. 30% increase in Tobacco Tax will allow more revenue that can be utilized for enabling education of more students through various scholarship programs. 

 Mr. Shariq Mahmood Khan, CEO of Chromatic Trust said that Pakistani smokers spend 10% of their average monthly income on cigarettes, a substantial number of lower-income tobacco users die prematurely from tobacco-related diseases, while families suffer the hardships and pain of tobacco-caused diseases and disabilities.

Imposing tobacco taxes is a confirmed policy to dampen spending on tobacco among youth. Also, increased taxation will result in the majority of the lower-income smokers quitting smoking to ensure the availability of funds required for essential services like health and education, he added.