Higher tax urged for tobacco industry

KARACHI: The government should tighten the taxation regime for tobacco industry by plugging holes in the system as it was vital for not only driving the revenue collection up, but also discouraging the consumption.

It was the consensus of a study-based moot, focusing on “Macroeconomic Implications of Tobacco Use in Pakistan”, and organised by the Social Policy and Development Centre (SPDC).

Presented the finding of study, Muhammad Sabir of SPDC, said the three-tier structure of excise duty on cigarettes introduced in 2017 had not only led to a significant increase in the consumption of cigarettes but also resulted in substantial revenue loss of Rs 42.5 billion in 2017-18. “Therefore, the price-tier-based structure of FED should be abolished, and a single, high, uniform tax be applied to all types of cigarettes, which would not only help curb tobacco use in the country but would also contribute in generating more revenues that can be used for promoting public health,” Sabir said quoting the study.