The Pakistan government is considering raising cigarette prices in Budget 2025, with potential recommendations for a 15-19% increase in federal excise duty. This move aims to reduce tobacco consumption, which has had significant public health and economic ramifications, with widespread usage and smoking-related illnesses impacting a large portion of the population.
ISLAMABAD: The Pakistan government is considering making cigarettes more expensive in budget 2025, ARY News reported, citing sources.
According to details, the National Institute of Health (NIH) has started receiving recommendations from the stakeholders regarding the increase in cigarette rates.
Sources further revealed that NGOs have submitted recommendations to increase 26.6% increase in the Federal Excise Duty (FED) on tobacco.
The Tobacco Control Cell has also finalised its recommendations for making cigarettes more expensive in budget 2025, sources say.
The Ministry of Health will finalize these recommendations and forward them to the Ministry of Finance this week, sources state.
There is a possibility of a 15% to 19% increase in FED on tobacco in the budget 2025, sources knowing the matter said.
Currently, the Pakistan government is levying a FED of Rs120 per cigarette pack, while local industry cigarettes are being sold at 90 rupees per pack.
Multinational cigarette manufacturers paid Rs173 billion in taxes last year and local cigarette manufacturers evaded 240 billion rupees in taxes lat year.
Pakistan faces a significant challenge with widespread tobacco consumption, with over 31.9 million adults aged 15 years and above identified as current tobacco users, constituting nearly 19.7% of the adult population.
Smoking-related illnesses claim over 160,000 lives annually, representing a substantial 1.6% of the nation’s GDP each year. However, in the fiscal year 2022-23, cigarette taxes covered only 16% of these expenses, marking a decline from 19.5% in 2019.
As we approach the 2025 budget, discussions about potential changes to the taxation of cigarettes have been generating significant attention. It has been reported that a proposal to increase the tax on cigarettes is under consideration as part of the budget plan. The potential impact of this proposed tax increase raises questions about its effects on public health, consumer behavior, and government revenue. Supporters argue that raising cigarette taxes can lead to a decline in smoking rates and provide additional funding for healthcare initiatives. On the other hand, critics express concerns about the potential burden on consumers and the likelihood of illicit trade in tobacco products. The debate surrounding this proposed tax increase underscores the complex interplay between public health objectives and economic considerations. As stakeholders await the final decisions on the 2025 budget, the potential implications of the proposed cigarette tax increase are poised to be a focal point of ongoing discussions and analysis.
Source: ARY NEWS
Summary:
In preparation for Budget 2025, the Pakistan government is considering a significant increase in the tax on cigarettes based on recommendations from stakeholders and the National Institute of Health. NGOs have proposed a 26.6% rise in the Federal Excise Duty on tobacco, while the Tobacco Control Cell has finalized its suggestions for making cigarettes more expensive. The Ministry of Health is expected to forward these recommendations to the Ministry of Finance. With over 31.9 million adults identified as tobacco users, the government aims to address smoking-related health issues and increase tax revenue from cigarette sales, as current taxes cover only 16% of related expenses.
Disclaimer:
This content is AI-generated using IFTTT AI Content Creator. While we strive for accuracy, it’s a tool for rapid updates. We’re committed to filtering information, not reproducing or endorsing misinformation. – Khabristan.pk for more information visit privacy policy
Leave a Comment