Tax on tobacco

Published
1

THE media is abuzz with what it has dubbed a sin tax or health tax to be levied on cigarette manufacturers in Pakistan. Anti-smoking activists want heavier taxation on tobacco products as they feel this decision will discourage the smoking habit. This may not be the case.

A higher taxation rate on cigarette manufacturers may persuade smokers to switch to low-priced, tax-evading products. Hence, higher taxes may encourage and create a heavier burden on the public-health expenditure.

Civil society should realise that the tobacco industry in Pakistan is among the highest tax payers in Pakistan, while a much larger number of unregistered cigarette producers are not paying any taxes and selling their product at lower prices than the minimum rates set by the government.

One holds no brief for cigarette manufacturers but before raising taxes on the few companies that pay, the government and civil society must take effective measures to reduce illegal trade of cigarettes.

Siraj Muneer Soomro
Karachi

Published in Dawn, February 8th, 2019

Opinion

Editorial

Fixing bond markets
01 Oct, 2026

Fixing bond markets

THE plan to deepen the domestic local currency bond market by allowing the public to trade government securities...
Call centre rackets
01 Oct, 2026

Call centre rackets

A NUMBER of recent raids conducted by the authorities in different cities point to the growing threat fraudulent ...
Homeward bound
01 Oct, 2026

Homeward bound

FIVE months after Somali pirates captured an oil tanker carrying a 19-member multinational crew, Somali maritime...
Kashmir unresolved
Updated 30 Sep, 2026

Kashmir unresolved

The just solution lies in India addressing the issue through a trilateral dialogue involving the legitimate representatives of the Kashmiri people and Pakistan.
Water shortage
30 Sep, 2026

Water shortage

THAT the country is entering the Rabi season with an anticipated water shortage of nearly 25pc, the lowest carryover...
Young hearts
30 Sep, 2026

Young hearts

THE observance may have passed, but the message of World Heart Day should not fade with it. The occasion is a useful...