Daily Times

The government has been unable to meet any tax collection targets from the cigarette industry over the past seven years, according to a recent study conducted by the Sustainable Development Policy Institute (SDPI).

According to the SDPI study, the FBR has missed the targets since 2017 after introducing the third tier.

Then, the government decided to introduce the third tier under the influence of multinational cigarette companies. The country lost Rs 567 billion in potential revenue in the last seven years due to policy loopholes.

Talking to the media, the country head of Campaign for Tobacco-Free Kids (CTFK), Malik Imran, said PML-N’s last government introduced the third tier due to the pressure of two big cigarette companies, Philip Morris and British American Tobacco.

He demanded the government initiate an inquiry based on the report and take immediate action against these companies. Researchers and analysts have demanded urgent attention and comprehensive reforms to navigate through these challenges and counter the influence of these mighty cigarette industry giants.

The SDPI study has also shed light on the dynamics of the cigarette industry and its strong influence.

The study also highlighted how high and middle-income countries successfully imposed high taxes on cigarette products to decrease consumption and increase government revenues. Still, Pakistan needs a clear strategy for using cigarette taxation and prices as a public health tool.

According to details, multinational cigarette companies pushed authorities to introduce a three-tier excise duty structure in 2017 while shifting the focus on revenue collection and ignoring adverse effects on public health.

However, it was later proved that the target of collecting more revenue through the introduction of the third tier was also missed and needed to be more accurate. It was the time when cigarette prices in Pakistan were the lowest in the world, which fueled consumption and ultimately put a burden on the country’s fragile healthcare system.

The World Health Organization (WHO) emphasizes the need to safeguard tobacco tax policies from the vested interests of cigarette companies for the effective development, implementation, and enforcement of public health initiatives. However, the study added that it did not happen in Pakistan.