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.

Another jolt for nation as NEPRA hikes electricity price by Rs1.19 per unit
- 3 hours ago

Pakistan retains all options to safeguard its rights under IWT
- 10 hours ago
Newlyweds Dua Lipa and Callum Turner arrive in Sicily for wedding celebrations
- 7 hours ago
Pakistan beat Australia to win ODI series 2-1
- 7 hours ago
Noor Mukadam murder case: SC upholds Zahir Jaffer's death sentence
- 7 hours ago

American cities are paying too much for sprawling housing
- 12 hours ago

Final ODI: Australia win toss and elect to bat against Pakistan
- 11 hours ago

Yasin Joyia appointed to prestigious committees of Eye Bank Association of America
- 12 hours ago

Pakistan qualify for semi-finals of U-18 Men’s Asia Cup Hockey Tournament
- 3 hours ago

Security forces kill four Khwarij in two separate engagements in KP: ISPR
- 3 hours ago
Israel strikes in Lebanon despite ceasefire deal
- 10 hours ago

Federal budget likely to be presented on June 10; summary sent to NA, Senate
- 12 hours ago










