Rawalpindi - While the current budget proposals are being formed and revision in the tobacco taxation might be considered, multinational tobacco firm, in a blatant disregard of the government policies, have already reduced their cigarette pack prices, said CEO The Network for Consumer Protection.
In the recent bid to oust the competition in tobacco industry, multinational tobacco companies have been pressurising the Federal Board of Revenue (FBR) to introduce 3rd taxation slab in the tobacco industry in order to make their cigarettes cheap and widely available in the market, he said.
In a recent promotional flyer, advertised in the tobacco stores, it is seen that the multinational firms have already reduced the price of their tobacco brands.
The budget proposals have not been finalised, but it seems that the tobacco companies are so confident with their effective lobbying that they already started promotional activities of their brands ahead of the budget.
In Pakistan, the high prevalence of tobacco use kills more than 110,000 people each year, which is approximately 300 deaths every day, Nadeem Iqbal, CEO of The Network for Consumer Protection added.
As per The Network of Consumer Protection (TNCP) Report, 2017, tobacco use kills nearly six million people worldwide each year. The TNCP report further states that approximately 5,000 people are admitted to hospitals every day in Pakistan due to tobacco-related diseases.
Youth smoking has become an endemic in Pakistan, and with this recent stunt of multinationals the cigarette, consumption among the youth is bound to increase manifolds. Nadeem Iqbal, CEO of The Network for Consumer Protection, while speaking at a ‘Pre-Budget Consultation Regarding Tobacco Taxation’ meeting held here on Thursday said, “We need the next generation to be healthy but the tobacco industry has been trying to create a third tier of taxation for tobacco.”
“The tobacco industry hires former bureaucrats which makes it difficult for decision makers to increase cigarette prices. There is also no official data available on the tobacco industry and government have been relying on forged and manipulative data provided by the Multinational tobacco industry,” he further lamented.
Low tax coupled with a 2 layered tier system has already made cigarette prices lowest in Pakistan among South East Asian region. The Introduction of 3rd tier will result in reduction of cigarette prices and massive increase in consumption of cigarette amongst the youth who will be able to afford these cheap cigarette packs now.