‘Sin tax’ will be imposed on cigarettes: Kiani

Islamabad:ministerfornational Health Services (NHS) Aamer Mehmood Kiani has announced that soon a “sin tax” will be imposed on cigarettes and sugary beverages.

Speaking at a public health conference, Kiani said that the government was committed to increasing the health BUDGET By ive per Cent of GDP.

“Variousrouteswillbeusedtoincrease the health budget,” he maintained, “and one of them is imposing a sin tax on tobacco products and sugary beverages. That sum will be diverted to the health budget.”

Currently, the government spends a mere 0.6 per Cent of GDP on HEALTH. It HAS been suggested several times in the past that sin taxes be imposed on products that CAUSE HEALTH-RELATED Issues As A result of which the state pays heavy penalties in the shape of healthcare spending and lowered human productivity.

The director general of the NHS Ministry, Dr ASAD HAFEEZ, SAID that tax on tobacco and sugary beverages was being charged in some 45 countries.

“A sin tax is an internationally recognised term AND Is speciically LEVIED on certain goods deemed harmful to society, for example tobacco, candies, soft drinks, fast foods, coffee and sugar,” he said.

“The United States charges about $1.5 (approximately Rs200) per pack of cigarettes, while the UK charges 40 pence (around Rs100) per litre of sugary beverages as sin tax. Thailand, as well as a number of other countries, has similar taxes that are earmarked for healthcare services.”

DRHAFEEZEXPLAINEDTHATINDIAIMPOSES a sin tax on gutka and paan masala, and the sums thus collected are spent on the healthcare sector since these products cause illnesses that become a burden on the public exchequer.