ISLAMABAD - Welcoming the reports that the International Monetary Fund (IMF) has asked Pakistan to impose uniform excise rates on both local and foreign cigarette producers, the stakeholders have said that now the main responsibility lies with the sitting government to ensure a uniform taxation and duties on tobacco producers.
“It is a welcoming gesture that the international lender has asked the government of Pakistan to slap uniform taxes and duties on both local and foreign cigarette producers to ensure a level playing field,” said an Islamabad-based think-tank, Capital Calling, here on Wednesday.
It also appreciated former health minister Dr Nadeem Jan calling for a 50 percent increase in taxes on cigarettes to make them harder to access for the masses.
The think tank has endorsed the minister’s statement rubbishing the propaganda that increase in taxes will lead to smuggling of cigarettes, resulting in a loss to the national exchequer.
According to estimates, cigarette prices are the cheapest in Pakistan compared to other regional countries, it said.
The reports on IMF recommendations mention that it has suggested applying a consistent excise rate in one slab to all domestically produced cigarettes, regardless of the manufacturer’s origin.
It means local and multinational manufacturers will face no discrimination in taxes.
The objective of these recommendations is to ensure equitable taxation across cigarette products, regardless of their source.
The think tank stated that it is estimated that the government has faced Rs567 billion loss due to influence of the international tobacco companies.
It said there is a dearth of research to measure the damage that smoking has done to the society. The survey conducted to assess this damage is highly tilted towards economics, hence offering no solutions as to how to bring down smoking in the society.
