Experts urge FBR to consider tobacco taxation as public health policy not a revenue-generation tool.
Rs 770 billion annual economic burden caused by smoking-related diseases, which is 1.2% of Pakistan’s GDP.
The Tobacco Control Knowledge Hub aims to serve as a centralized platform for collaboration, coordination, advocacy, and evidence-based discussion.
Speaker warned against allowing the tobacco industry to implement self-monitored systems, which could facilitate tax evasion and illicit trade.
ISLAMABAD ( WEB NEWS )
The Sustainable Development Policy Institute (SDPI) on Friday successfully hosted a seminar on tobacco taxation, featuring the soft launch of Pakistan’s first-ever Tobacco Control Knowledge Hub.
The event underscored the critical role of data-driven policy-making in tobacco control and taxation, especially as the government prepares the next fiscal year’s budget.
In his opening remarks, Dr. Abid Qaiyum Suleri, Executive Director of SDPI, emphasized the timeliness of this discussion, highlighting that every recommendation presented to the Ministry of Finance increases the chances of policy reforms at the highest decision-making levels. SDPI and its partner organizations continue to work extensively on tobacco control, and the Tobacco Control Knowledge Hub is a significant milestone in this endeavor.
He said that the Tobacco Control Knowledge Hub aims to serve as a centralized platform for collaboration, coordination, advocacy, and evidence-based discussion. Dr. Suleri noted that data-driven activism is essential, as every advocacy effort is questioned for its factual basis. “This hub will fill the existing information gap by providing research-backed analysis, data projection, and trend monitoring under one platform,” he added.
During the Tobacco Knowledge Hub briefing, Dr. Waseem Iftikhar Janjua, Senior Researcher SDPI highlighted that Pakistan is joining a global network of nine knowledge hubs operating in India, Australia, South Africa, and other countries. He stressed the urgent need for a policy discussion platform to generate, collect, and share evidence on tobacco control, particularly in Pakistan and the broader Mediterranean region, including the Middle East and North Africa.
Presenting analysis of Pakistan’s track and trace system, he emphasized that Pakistan, as a signatory to FCTC must ensure that the system remains under government control, preventing any industry-led manipulation. He warned against allowing the tobacco industry to implement self-monitored systems, which could facilitate tax evasion and illicit trade.
Syed Ali Wasif Naqvi, Head of the Centre for Health Policy and Innovation, provided a demonstration of the Tobacco Knowledge Hub, showcasing its capabilities as a repository of research, policy recommendations, and capacity-building resources for policymakers, researchers, civil society, and the public.
Dr. Sajid Amin Javed, Deputy Executive Director, SDPI highlighted that while the Federal Board of Revenue (FBR) is considering reducing taxes on tobacco, health experts and think tanks advocate for increased taxation. He stressed that tobacco taxation should be seen as a public health policy, not a revenue-generation tool.
He called for the FBR to formally document tobacco taxation as a tobacco control strategy, implement unified taxation across all tobacco products, and recognize that higher taxation effectively encourages people to quit smoking.
Dr. Matiur Rehman, Head of Tobacco Control at the National Health Services Academy, pointed out that Pakistan, as a tobacco-producing country, needs a comprehensive strategy to support farmers in reducing tobacco cultivation. He emphasized the lack of coordination among ministries, with one ministry promoting tobacco production while others tax it.
Asif Iqbal, Managing Director of SPDC, provided insights into Pakistan’s highly concentrated tobacco market, where the top 15 brands account for 80% of sales, and five major companies control 72% of the market share. Illicit trade remains a significant challenge, with 21.3% of the market comprising locally produced untaxed cigarettes, while smuggled cigarettes account for an additional 11.9%, totaling 33% illicit trade, he added.
In her vote of thanks, Ms. Jadambaa Narantuya, Cluster Lead Disease Control, WHO Country Office, highlighted the economic and human costs of tobacco-related diseases, with over 800,000 deaths annually due to non-communicable diseases (NCDs). She reaffirmed WHO’s commitment to tobacco control policies and announced an investment case study to advocate for reduced tobacco consumption.
She emphasized that the Tobacco Knowledge Hub will serve as a comprehensive database and collaborative platform to advance policy discussions, train stakeholders on best practices in tobacco taxation, and monitor advocacy efforts. By documenting the impact of tobacco taxation on health and economic costs, the hub will strengthen efforts to reduce the burden of tobacco-related diseases in Pakistan and globally, she added.
She said that tobacco taxation, like sugar-sweetened beverage (SSB) taxes, is a public health initiative. He highlighted the Rs 770 billion annual economic burden caused by smoking-related diseases, which is 1.2% of Pakistan’s GDP. With a threefold increase in the Federal Excise Duty on cigarettes in one year, there has been a 19.2% decline in aggregate cigarette consumption, proving that higher taxes effectively reduce smoking rates, she said.