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Tobacco Taxation Part of IMF Programme

Islamabad: Speakers at a webinar emphasised that one of the requirements of the International Monetary Fund (IMF) programme that Pakistan needs to follow is the requirement for tobacco taxes.

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Dr. Nausheen Hamid, the Parliamentary Secretary for Health, stated that the federal government was committed to developing methods for tracking cigarette taxes and other associated health concerns.

The Sustainable Development Policy Institute (SDPI) held a webinar on fiscal intervention for health policy on Tuesday, with the theme “Advocate the Case for Imposing Higher Taxes on Tobacco Regime.”

According to Ms. Hamid, tax fraud in the tobacco business damages the national economy billions of rupees, mostly in health care expenses, and an immediate trace and track mechanism is required.

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According to Dr. Asif Iqbal, the managing director of the Social Policy and Development Centre, Pakistan’s use of low-quality tobacco has increased as a result of the three-tier system.

He asserted that a 30 percent hike in the Federal Excise Duty (FED) will lower cigarette usage by about 3.8 percent while also increasing tax collection on tobacco goods by Rs 19 billion.

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