Govt spends Rs 140b annually to control tobacco related diseases

ISLAMABAD-Government spends around Rs140billion annually to control tobacco related diseases, while imposition of additional health levy is essential to eradicate the spread of tobacco epidemic, statement said. Human Development Foundation (HDF) a body working for tobacco control in the country in a statement issued said that World Health Organization (WHO) recognizes taxation as the most effective way to reduce the consumption of unhealthy products including sugar, tobacco and alcohol and to control the consequential Non-Communicable Diseases (NCD) - a catch term for all the diseases including diabetes, heart diseases, cancer and chronic lung disease; which are responsible for 70% of deaths worldwide.

It said that the global health statistics have identified smoking as the precursor for these NCDs and estimates that $1.436 trillion are spent to deal with the Non-communicable diseases caused by smoking worldwide.

It is a worrying revelation since 40% of the costs of smoking are shouldered by the developing countries and the share is predicted to grow unless the precautionary health measures are adopted, said the statement.

It said WHO FCTC advocates for taxation which does not only discourage smoking leading to better health benefits but also contributes to revenue generation for the health sector of a country.

Statement said that the civil society of Pakistan Confronted with Multiple  among them weak enforcement of tobacco-related laws, the lobbying and in-turn the building pressure from the tobacco industry and the inability to create awareness in the rural areas about the harmful impacts of tobacco consumption.

Azhar Saleem CEO(HDF) said that the health minister claimed that the sin tax or health Levy was planned to be imposed on tobacco products but eventually in this finance reform’s bill we don’t see any increase of taxes on tobacco products, neither the health levy was imposed this time. The current approach of the government clearly reflects that the health of the youth comes second if compared with the Tobacco industry profits.

He said, Pakistan spends around 140 Billion rupees every year on tobacco-related disease, which is a huge liability on the health sector. Preventive measures including imposition of excise in the form of Health Levy can help eradicate the speared of the tobacco epidemic in the country.

Meanwhile, ministry of National Health Services (NHS) has remained unsuccessful in imposing its own introduced ‘Health Tax’.

Officials said that imposition of Health Tax on tobacco and other beverages will help in collecting huge amount of tax by multinational companies, but will benefit the local tobacco industry.

Official sources said that the local tobacco industry is also paying low tax to government, while it also contributes in alleged illicit tobacco trade in the country.  

Officials at ministry of NHS said that Federal Board of Revenue (FBR) opposed the health levy on tobacco products as multinational tobacco manufacturin g industry pays around 98billion rupee in taxation, while local manufactures pay only Rs10billion. “Local tobacco industry needs to be bring in the tax net’ said the official.

Earlier, Prime Minister (PM) Imran Khan had stated that only two tobacco companies pay 98percent tax to government exchequer, while local industry contributes only 2 percent in this regard.

 

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