Govt Urged to Reconsider Tobacco Taxation Freeze Amid Calls for Climate Levy

Economists, public health specialists, and environmental experts have jointly advised the government to reconsider its decision to freeze tobacco taxation, citing concerns over rising consumption and related health issues. In a statement issued on Tuesday, the group emphasized that maintaining the status quo would only exacerbate the nation’s growing tobacco epidemic.

According to data from the Ministry of National Health Services, Regulations, and Coordination, Pakistan has witnessed an alarming increase in tobacco-related deaths and illnesses over the past few years. The experts warned that the current freeze on taxation is likely contributing to this upward trend, as it fails to account for inflationary pressures and rising consumption levels.

The group also proposed introducing a climate tax on the tobacco industry, arguing that such measures could not only generate revenue but also serve as a deterrent against environmental degradation. They pointed out that the tobacco sector is one of the largest contributors to greenhouse gas emissions in Pakistan, with cigarette production and disposal processes having devastating impacts on local ecosystems.

The experts further suggested that any future tax adjustments should be linked to inflation rates to prevent erosion of the tax base. They also emphasized the need for robust public awareness campaigns and stricter regulations to reduce tobacco consumption among the country’s youth. The government is yet to respond to these recommendations, which have been endorsed by a coalition of civil society organizations and professional bodies.

Source: original report.