Tobacco Taxation: Big source to get huge Revenue

BusinessTobacco Taxation: Big source to get huge Revenue

ISLAMABAD, Pakistan: The Society for the Protection of the Rights of the Child (SPARC) organized a dialogue session on the need of smart decision making to revive Pakistan’s economy by raising taxes on tobacco products.

The session titled “Tobacco Taxation: Big source for huge Revenue” was organized at a time when Pakistan has seen unprecedented hike on petroleum, gas and electricity prices and government is struggling to keep the subsequent rise in cost of commodities in check.


Mr. Malik Imran Country lead for Campaign for Tobacco Free Kids, said that Prime Minister Mr. Shahbaz Sharif and his cabinet members have repeatedly stated that the government won’t shy from taking unpopular decisions to strengthen Pakistan’s economy.

In order to fill the state’s coffers, the government has tried raising petroleum prices and reducing imports but one of the biggest sources of revenue remains untapped.

Mr. Imran alluded to tobacco taxation which has remained stagnant in Pakistan for the last 4 years. He mentioned that the use of tobacco causes annual an economic burden of 615 billion which is 1.6% of Pakistan’s GDP. On the other hand, the revenue generated from the tobacco industry is 120 billion. This situation calls for an immediate increase because in Pakistan, tobacco products are being sold at lower rates compared to other South Asian countries.

Mr. Khalil Ahmed Dogar, Program Manager, SPARC said the there’s no justification for not raising taxation on tobacco products which are non-essential and hazardous items and cause 170,000 deaths every year. On an average, Pakistani smokers spend 10% of their average monthly income on cigarettes. Due to cheap and easy affordability nearly 1200 children begin smoking every day in the country. A struggling economy such as Pakistan can’t afford this much loss of precious human and finance resources. Therefore tobacco products should be heavily taxed as it is the most effective strategy to safe public health and generate revenue.

Mr. Shariq Mahmood Khan, CEO, Chromatic Trust, stated the according to the government all of the price increment decisions have been taken in the light of Pakistan’s international commitments.

Mr. Shariq stated that Pakistan is a signatory of WHO Framework Convention on Tobacco Control which has repeatedly recommended Pakistan to increase taxation on tobacco products in accordance to inflation. The government needs to implement this recommendation which will not only generated much needed revenue but also reduce tobacco consumption.

Mati-Ullah is the Online Editor For DND. He is the real man to handle the team around the Country and get news from them and provide to you instantly.

Must read

Recent News

High-profile UK delegation explores collaborative opportunities at NUST

ISLAMABAD, Pakistan: Marking a significant milestone in bilateral higher education relations between the UK and Pakistan, a high-powered British delegation is currently on an...

Ministry recommends import of 0.200 million metric ton of Urea fertilizer

ISLAMABAD, Pakistan: The Ministry of Industries and Production has recommended import of 0.200 million metric ton of Urea fertilizer to stabilize prices and supply...

PM Shahbaz for joint efforts to end malaria

ISLAMABAD, Pakistan: Prime Minister Shahbaz Sharif has called upon all partners, organizations, healthcare professionals, and individuals to unite in their efforts to end malaria.In...

AUD to INR: Australian Dollar to Indian Rupee Today – 25 April 2024

The Australian Dollar (AUD) was trading at 54.29 as per the Indian Rupee (INR) on Thursday.Currently, Indians are now the second-largest migrant group in...

USD to PKR: USD Dollar Rate in Pakistan Today – 25 April 2024

The US Dollar (USD) was being bought and sold at Rs 277.6 and Rs 280.35 in the Open Market against the Pakistani Rupee (PKR)...