KARACHI: Society for the Protection of the Rights of the Child (SPARC) organized a session on imposition of surcharge on tobacco products for supporting health infrastructure to fight COVID-19 pandemic.
Anti-tobacco advocates drew attention of Prime Minister Imran Khan towards a decision approved by the federal cabinet to implement a surcharge of Rs10 on tobacco products and Rs 01 on sugary drinks that remain pending to date.
Shahzad Qureshi, MPA of Sindh Assembly from PTI, said the government needed to adopt a futuristic approach and channelize the additional revenues into situations where financial setbacks were faced such as the current pandemic of coronavirus.
This additional 40 to 50 billion rupees will continue in lessening the financial crunch that the country is facing. He further urged the government to consider implementing the surcharge on cigarettes and sugary drinks on an immediate basis to generate the much- needed revenue. He further says provincial legislation is also important so implementation can be improved.
Muhammad Kashif Mirza, Media and Communication Manager SPARC, said the country was facing a severe shortage of funds to combat the coronavirus (COVID-19). He suggested to the government to impose surcharge on tobacco products and sugary drinks that could generate Rs 50 billion.
He further added the full implementation of both taxes could earn Rs 50 billion in revenue that could be used to purchase personal protective equipment (PPE) for health workers and testing kits required for the pandemic, he added.
He said both cigarettes and carbonated drinks had poor nutritious value and the sales trends showed growing habit of smoking among youngsters and high consumption of soft drinks. Not only higher prices discourage youth from initiating cigarette smoking but encourage current smokers to quit, who are now a days at a higher risk to coronavirus due to their decreased immunity.
Haris Jadoon, Filed Manager, said last year, the government announced a surcharge of Rs 10 per pack of cigarettes and Rs 01 per 250ml of sugary drinks. However, the surcharge approved by the cabinet was not presented in the financial bill 2019-20 and therefore could not be implemented. He further said: “If the surcharge is imposed on cigarettes, the government will generate about Rs 40 billion per year in addition to the existing tax revenues and same is the case with sugary drinks.
Ms. Shumaila Muzammil said that efficient imposition of taxes on those can decrease people’s access as their consumption is injurious to health and is increasing health burden of the country. According to health experts and advocates, the severe shortage of funds faced by Pakistan to combat the coronavirus could be overcome by imposing a surcharge on tobacco products.