PCS opposes cigarette tax reduction

PESHAWAR: Pakistan Chest Society on Friday resented the proposed government policy on reducing taxes on tobacco in the coming 2017 budget, fearing that it would increase smoking in the country.

Speaking at a press conference at the Peshawar Press Club in connection with the World No Tobacco Day, senior pulmonologist Prof Dr Arshad Javaid, president Pakistan Chest Society Centre, termed the proposed move of the central government a disaster for the health of the people of Pakistan.

“This step is expected to increase the number of smokers, thereby increasing the disease and death burden caused by tobacco,” he added. “Research has shown that increase in tobacco prices leads to a decrease in number of smokers in a given community. Here our government is going to do exactly the opposite: make it easier to buy cigarette.

While it may not matter for the richer strata of the society, for the poor and lower middle class, even a small price rise matters a lot,” the pulmonologist explained. Quoting a research study on tobacco taxation in Pakistan, conducted jointly by FBR, World Bank, University of Toronto, Johns Hopkins University, University of Illinois at Chicago and the Beaconhouse National University, he said that a uniform specific excise tax of Rs31.2 per pack of 20 cigarettes could reduce overall cigarette consumption by 7.5 per cent, increase tax revenues by Rs27.2 billion.

“The reason for the reduction on tobacco taxes given by Haroon Akhtar Khan, special assistant to the prime minister on revenue, is ridiculous,” he added. He pleaded that high taxes on cigarettes led to their smuggling which in turn costs billions to the exchequer. “If such a cause and effect relationship is true and logical, the government should bring heroin, hashish and other menaces in the open market as a commercial commodity, and earn huge income through taxes,” said Dr Arshad Javaid.