Cigarette consumption drops by up to 25 per cent in Pakistan

WEB DESK: In a recent development, the International Monetary Fund (IMF) has brought to light a substantial decrease in cigarette consumption in Pakistan, attributed to a notable price or tax hike on tobacco products.

According to the IMF’s Technical Assistance Report within the Pakistan Tax Policy Diagnostic and Reform Options, the consumption of cigarettes has plummeted by an estimated 20-25 per cent.

The report, unveiled in February, underscores the IMF’s advocacy for uniform excise rates on both local and foreign cigarette manufacturers.

This proposition, aimed at ensuring equitable taxation practices, seeks to tackle health concerns associated with smoking while maintaining fairness in taxation.

Furthermore, the IMF suggests subjecting e-cigarettes to similar taxation as traditional tobacco products, citing analogous health implications.

Endorsing the IMF’s recommendation, Capital Calling, an Islamabad-based think tank, aligns its stance with the guidelines laid out by the World Health Organisation (WHO).

The primary objective behind these endorsements is to establish parity in taxation across all cigarette products, irrespective of their origin.

Health activists have rallied behind the IMF’s proposal, stressing the imperative need to revamp tobacco taxation in Pakistan.

In a recent gathering organised by the Society for the Protection of the Rights of the Child (SPARC), activists fervently urged the Government of Pakistan to transition towards a Single Tier Tobacco Taxation System, advocating for the eradication of the prevailing dual-tier structure.

Malik Imran Ahmed, the Country Head of Campaign for Tobacco Free Kids (CTFK), underscored the synergy between the IMF’s recommendations and the ongoing dialogues within Pakistan.

These discussions are geared towards addressing fiscal and external sustainability weaknesses while fostering economic recovery and inclusive growth.

The IMF’s revelations and subsequent endorsements signify a pivotal step towards reforming tobacco taxation in Pakistan, with a concerted effort towards public health and equitable fiscal policies.