Academicians appreciate Finance Minister going ahead with tobacco tax reforms
The researchers and the scholars say that there is a great need to implement the recommendations of the IMF regarding tax reforms.


Islamabad: It is encouraging that Finance Minister Muhammad Aurangzeb gave out hope to the masses that the country could get $3 billion package from International Monitory Fund (IMF) considered to be vital for sustenance of falling economy, lauded the academicians on Monday.
Dr. Aftab Madni, dean of the Indus University, however, underlined the need to implement the recommendations of the IMF regarding tax reforms in a true spirit.
“Pick and choose wouldn’t help the reform process” he said.
He stressed that the IMF has explicitly recommended that there has to be uniformed tax on cigarettes regardless of their national or multinational brand. This alone will generate revenue in billions.
He said cigarette is a non-essential item and the government wouldn’t face any public backlash if it moves ahead as per IMF recommendations.
He said that about 9 percent of Pakistanis are smokers and the volume of second-hand smoking still has to be explored. The cigarettes need to be made expensive in any case.
It causes disease and deaths that have to be accounted for.
He appreciated Dr. Hassan Shehzad from International Islamic University Islamabad, for being the only researcher whose report has been referred to by the IMF in its recommendations for tax reforms.
He said that the report has clearly established a link between consumption and affordability.
Dr Shehzad quoted the minister as saying, "The country’s current $3 billion arrangement with the fund runs out in late April and the government is seeking a long-term and bigger loan to help bring permanence to macroeconomic stability as well as an umbrella under which the country can execute much-needed structural reforms."
He added that reports have mentioned that cigarette industry is responsible for a loss of Rs567 billion to the national exchequer in less than a decade.
He said that the finance minister has a profound background in banking and it is normal for a banker to understand the volume of losses a product injurious to human health can cause.
Imposing uniformed tax on tobacco products is too little and too late, he said, but it has to be done. Dr Shehzad is a leading researcher in the country with an impact on policy making.

Welcome to the world of triple-digit spring weather
- 7 hours ago

WB approves additional financing of $108mn for Pakistan
- 2 hours ago

CTD, security forces kill 7 terrorists in Quetta
- 3 hours ago

Canada parliamentary elections: Liberal Party gains lead over Conservatives
- 4 hours ago

Strict punishments, heavy fines for violations of Hajj laws
- an hour ago

Severe heat wave in Sindh, rain likely in first week of May
- 3 hours ago

MAGA glam isn’t about beauty — it’s about politics
- 7 hours ago

PTA not to issue Starlink license immediately
- an hour ago

Govt, PTI on same page in response to Indian threats
- 4 hours ago

Pakistan Army shoots down Indian quadcopter for violating LoC
- 2 hours ago

CSS 2024 written exam result released
- 3 hours ago

Petroleum prices likely to remain same for next 15 days
- 4 hours ago