Search

Single-tier structure and high taxes can curb cigarette consumption

11:38 AM | 13 Apr, 2024
Single-tier structure and high taxes can curb cigarette consumption

ISLAMABAD - Experts and health advocates are supporting the International Monetary Fund's (IMF) recommendation to combat Pakistan's high cigarette consumption rates. 

The IMF suggests transitioning to a single-tier tax structure and increasing tobacco product taxes to reduce cigarette consumption. The IMF's Technical Assistance Report, titled "Pakistan Tax Policy Diagnostic and Reform Options," shows that cigarette consumption in Pakistan has decreased by 20-25% following a significant increase in tobacco product prices.

This decrease in consumption reinforces the need to align tax policies with the World Health Organization's (WHO) guidelines. Health activists are urging the government to switch to a Single Tier Tobacco Taxation System and eliminate the existing dual-tier system for local and imported cigarettes. 

By implementing uniform excise rates and bridging the gap between local and foreign cigarette manufacturers, Pakistan can streamline its taxation system and reduce healthcare costs associated with tobacco-related illnesses. Pakistan, the seventh-largest tobacco-consuming country globally, signed the Framework Convention for Tobacco Control (FCTC) in 2004.

The WHO emphasizes the importance of robust tax measures to reduce tobacco consumption, particularly in low and middle-income countries, by elevating tobacco prices. However, the cigarette industry is opposing tax hikes, disregarding the health consequences associated with the affordability of cigarettes.

The influence of multinational corporations has led to a staggering loss of 567 billion rupees in revenue over the past seven years. A study by the Pakistan Institute of Development Economics (PIDE) reveals that smoking-related diseases and deaths cost Rs 615.07 billion ($3.85 billion) in 2019, amounting to 1.6% of the GDP.

Daily Pakistan Global Web Desk

Advertisement

Today Currency Rates in Pakistan - Rupee to US Dollar, Euro, Pound, Dirham, Riyal - 24 July 2024

Pakistani rupee rates against US Dollar and other currencies on July 24, 2024 (Wednesday) in open market.

USD to PKR Rate Today

US dollar was being quoted at 278.4 for buying and 280.1 for selling. Euro's buying rate remains stable at 301.35 and selling rate is 303.45.

British Pound rate is 354.5 for buying, and 358.35 for selling. UAE Dirham AED was at 76.5 and Saudi Riyal hovered at 73.6.

Currency Rates Today

Currency Symbol Buying Selling
US Dollar USD 278.4  280.1 
Euro EUR 301.35 303.45
UK Pound Sterling GBP 354.5 358.35
U.A.E Dirham AED 76.5  77.25
Saudi Riyal SAR 73.60 74.32
Australian Dollar AUD 184.75 186.55
Bahrain Dinar BHD 741.15 749.15
Canadian Dollar CAD 203.50 205.50
China Yuan CNY 38.35 38.75
Danish Krone DKK 40.05 40.45
Hong Kong Dollar HKD 35.70 36.05
Indian Rupee INR 36.05 36.05
Japanese Yen JPY 1.91 1.99
Kuwaiti Dinar KWD 908.25 917.35
Malaysian Ringgit MYR 58.95 59.75
New Zealand Dollar NZD 169.24 171.24
Norwegians Krone NOK 26.04 26.34
Omani Riyal OMR 722.87 730.89
Qatari Riyal QAR 76.39 77.09
Singapore Dollar SGD 202.00 204.00
Swedish Korona SEK 26.40 26.70
Swiss Franc CHF 309.05 311.55
Thai Bhat THB 7.50 7.65

Advertisement

Follow us on Facebook

Follow us on Twitter

Sign up for Newsletter