ISLAMABAD—The call to increase tobacco taxes is gaining momentum, with Dr. Muhammad Zaman endorsing the policy. He argues that imposing taxes on smoking saves lives, as advocated by the Sustainable Development Policy Institute (SDPI).
Dr Zaman, the founding chairman of the Department of Sociology at Quaid-i-Azam University (QAU) and head of the Zaman Research Center, underlined the need to impose more taxes to save lives, stating that “Taxing tobacco saves lives by reducing consumption and channelling resources towards essential public health initiatives.”
The SDPI has previously pointed out deficiencies in the tax collection framework and the need for increasing taxes on tobacco products, particularly cigarettes. The institute published a detailed report based on government data that reveals the country lost Rs 567 in revenue during the last seven years. The report, titled “Tobacco Taxation in Pakistan: Unraveling the revenue loss of Rs567b to the exchequer,” highlights the staggering financial toll the tobacco industry inflicts on the national exchequer.
Dr. Zaman argues that cigarettes are non-essential and dangerous commodities. He believes that the affordability of cigarettes is the major contributor to high consumption and, ultimately, diseases and fatalities in the country. Therefore, he endorses increasing the prices of cigarettes as an internationally proven strategy to curtail consumption. Dr. Zaman also emphasizes aligning tobacco taxation with the guidelines outlined by the World Health Organization (WHO) and developing a long-term taxation policy grounded in global best practices and Article 6 of the WHO Framework Convention on Tobacco Control (FCTC).
To substantiate his argument of making cigarettes unaffordable to curb consumption, Dr. Zaman refers to a recent research report by Capital Calling, which shows that an increase in the prices of cigarettes has resulted in a decrease in consumption. The Islamabad-based think tank Capital Calling reported that “one in every ninety-four smokers was forced to quit smoking after a significant raise in taxes.” This has led to smokers saving money by quitting smoking to fulfil other needs like food, education, their children’s health, and paying the utilities.
More than 31 million Pakistani adults (15+), or about 19.7 per cent of the total adults, use some tobacco, which is one of the highest in the world. Malik Imran, Country Head of the Campaign for Tobacco-Free Kids, highlights the staggering economic toll of tobacco consumption, citing an annual loss of Rs 615 billion. He refers to a World Bank report and says there is ample room to increase tax on tobacco products. Imran believes that “The government can generate an additional Rs 17 billion to Rs 65 billion from the industry by increasing the tax to 26 per cent.”
