The global lender has given a set of recommendation and taxing non-essential items including cigarettes has received appreciation by health advocates and experts.


Islamabad: The International Monetary Fund (IMF) has recommended Pakistan to overhaul tax machinery and to tax non-essential items including cigarettes to boost revenue and improve public health.
The global lender has given a set of recommendation and taxing non-essential items including cigarettes has received appreciation by health advocates and experts.
“This is a crucial time for the government to fix economic problems and implement the IMF recommendation,” said Professor Muhammad Zaman, head of Zaman Research Center at Quaid-i-Azam University (QAU).
He said the IMF report has referred to a phenomenal study on this subject conducted by Capital Calling, an Islamabad-based think tank, which says the cigarette consumption has decaresed due to increase in prices.
He said there is a need to bring into account the cost of morbidity and mortality that smoking inflicts on the society.
“Smoking is injurious to health regardless of the cigarette brand,” he said.
He pointed to critical flaws within Pakistan's tax system particularly the cigarette industry, which have facilitated a loss of Rs567 billion during last seven years, as revealed by the Sustainable Development Policy Institute (SDPI).
The study further exposed the influence of multinational cigarette companies on policymakers, particularly evident in the introduction of a three-tier excise duty structure in 2017, which prioritized revenue collection over public health considerations. However, subsequent analysis proved this approach to be ineffective and misleading in revenue generation.
The SDIP research highlighting global best practices and how high and middle-income countries have successfully used high cigarette taxes to reduce consumption and boost government revenues.
Pakistan, however, lacks a coherent strategy in utilizing cigarette taxation and pricing as a public health tool.
Dr. Hassan Shehzad from the International Islamic University Islamabad (IIUI) echoed sentiments from the World Health Organization (WHO), stressing the need to shield tobacco tax policies from vested interests of cigarette companies to ensure effective development, implementation, and enforcement of public health initiatives.

TTP camps destroyed in Khyber Pakhtunkhwa during police operation
- 3 minutes ago

Security meeting scheduled amid rising terror threats in Pakistan
- an hour ago

Police officer shot dead by motorcycle-riding assailants in Bannu
- 2 hours ago
Wolf attack in Central Kurram leaves 9 injured, including child
- 33 minutes ago

Trump’s attacks on higher ed could provide a chance to reimagine the university
- an hour ago

UConn-Creighton ends in scuffle over 'fancy' dunk
- 17 minutes ago

PSX continues rally as KSE-100 gains 663 points amid IMF optimism
- an hour ago

FM reveals no plans for salary boost or pension increase in new budget
- an hour ago

Sindh introduces scholarship and job portal to boost education, employment
- 2 hours ago

Sugar prices drop by Rs2 in Karachi wholesale market
- 2 hours ago

Gold glitters, historic high in Pakistan
- 2 minutes ago
SpaceX aims to send robots to Mars by 2026, humans expected by 2029-2031
- 21 minutes ago