Tax on the anvil for cigarettes, sugary beverages

After continued lobbying by civil society, Minister for National Health Services (NHS) Aamer Mehmood Kiani has announced that soon a ‘sin tax’ will be imposed on cigarettes and sugary beverages. Speaking at the Health Services Academy, Kiani said that the government was committed to increasing the health budget by 5% per cent of GDP. “Various routes will be used to increase 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% 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. (Internews)