The Society for the Protection of the Rights of the Child (SPARC) organized an Online Session to discuss how increasing tobacco taxes can help fund healthcare infrastructure of the government.
Tobacco Control Activists stressed on the Pakistan Institute of Development Economics’ study that reveals compelling facts about the health burden of Tobacco on the country. According to the study in 2019 the revenue collected from tobacco taxes was only Rs120 billion, while the health burden caused by tobacco use amounts to Rs615 billion.
Owing to this wide imbalance the government must increase taxes on tobacco. It is also pertinent to note here no tobacco taxes have been raises by the current government since last three years, while health levy bill for tobacco remains pending.
Malik Imran Ahmed, Country Head, Campaign for Tobacco-Free Kids, told the media that the federal cabinet had decided to implement a healthy levy on tobacco products in June 2019.
The decision was made to help raise prices of tobacco and collect extra revenue for healthcare system. Higher prices of cigarettes also act as a deterrent for children and youth to take up smoking.
He further stated that two in five smokers-initiated cigarette smoking before the age of 10, tobacco-product excise taxes are most important for attaining the health objective of reduced tobacco consumption.
Unfortunately, some key members of the government repeatedly defused the move to protect the interests of the tobacco industry.
Government must consider implementing a health levy as early as possible. This way, it will be complying with its international obligations by taking care of the health needs of its people. Also, as per Sustainable Development Goal SDG’s target 2023, Pakistan is obligated to condense one-third of premature fatality from these diseases primarily caused by tobacco.
Khalil Ahmed, Program Manager SPARC said that Healthcare expenses are one of the biggest reasons why many Pakistanis fall below the poverty line every year. Most people defer healthcare treatment due to the lack of financial means to pay for care.
The pandemic has brought greater awareness amongst individuals globally about health-risk management. Pakistan allocation of GDP on health is 1.2%, whereas WHO recommendation is 5%. 30% Increase in Tobacco Taxes will help the government not only to generate extra revenue to reduce health cost burden and increase the revenue, eventually meet WHO targets.
It is suggested that the revenue collected through the health levy be allocated for the health budget of the federal government.
