ISLAMABAD: Experts at webinar called upon government to increase tax on tobacco products by 70 percent of their retail price, which is what they say are crucial to increase revenues in face of ailing economy.

Webinar on ‘Tobacco Taxation: Nostrum to Ailing Economy’ was organised by Sustainable Development Policy Institute (SDPI) here.

Dr Shafqat Munir Director ofResilient Development Programme SDPI said Pakistan ranks 10th highest tobacco-consuming country which needs immediate attention from government. He urged government to revisit fast-track progressive taxation regimes on tobacco to support economy and reduce incidence of tobacco-related diseases.

Asif Iqbal Managing Director of Social Policy and Development Centre said that if we plan to increase tax to 70 percent, we shall have to manage price hike by tobacco retailers. He said that FBR’s track and trace system has effectively reduced under-reporting and illicit trade.

Dr Waqar Ahmed Joint Executive Director SDPI suggested that brand registration fee structure should be increased and registration must be renewed annually and tax collection should be imposed in advance, which will not only guarantee higher revenue generation but will also discourage consumption.

Wasif Ali Naqvi senior Research Associate SDPI said that 170,000 annual deaths are caused by tobacco along with cardiovascular and respiratory diseases and cancers. He said that only two tobacco companies pay 98 percent of entire tax while remaining cumulatively pay 2 percent of tax.

Abdul Wahid Uqaily Head for Track and Trace FBR said that track and trace system has been imposed in eight companies and is still in process for nine other registered companies. He said that track and trace system will also reduce import burden in tobacco, sugar and cement sector.

Ammar Rashid Research Lead Heartfile said that under-reporting of production and sales must be countered. He called for improving data availability on consumption of tobacco products and impact of increase in tax and pricing on sales is crucial to come up with robust tax policies.

Minhaj us Siraj Chief Executive Officer Syndicate Health emphasised on conducting training for health advocates regarding tax proposals. He said imposition of an effective tax regime is complicated, as registered market is held by few companies and remaining market is infiltrated by illicit trade.

Published in The Daily National Courier, February, 07 2023

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