i NEWS PAKISTAN

To control tobacco usage, funding from Tobacco tax is necessary in PakistanBreaking

October 30, 2024

By Faiza Tehseen
For an effective control of tobacco usage in Pakistan, a small part of tax revenue from tobacco industry can play a vital role. It will also reduce the reliance on the international funding for tobacco control programs in the country, opined Syed Ali Wasif Naqvi, the Head of Policy Advocacy and Outreach working at Sustainable Development Policy Institute (SDPI), Islamabad while talking to INP.

He said, “Around 24 million people in Pakistan are consuming tobacco in different forms, causing over 160,000 deaths annually. Including healthcare cost, tobacco usage is instigating productivity, loses measured about PKR700 billion. The said amount is more than twice the total tobacco tax revenue”.

He said that Pakistan relies on international funding to control the tobacco usage. In the long run, it is not suitable. Political or economic shifts in donor countries could reduce funding streams, leaving Pakistan’s tobacco control efforts underfunded and unsustainable.

Ali Wasif Naqvi said, “Annually, PKR 300 billion are collected concerning the tobacco taxes. A mere 0.05% of the said amount (around PKR 150 million) can be dedicated to tobacco control. It is necessary to cut reliance on international funding for the continuity of tobacco usage control efforts. In this way, not only the tobacco control sequence in Pakistan will be streamlined but it can make the country an example regarding sustainable health financing”.

He said that a domestic funding model, on the other hand, would increase national ownership, bolster public trust, and ensure the continuity of programs regardless of international political dynamics. Often, international donor agencies and non-governmental organizations have to face bureaucratic hurdles, legal challenges, and political and tobacco industry resistance in carrying out their programs. It complicates the implementation of tobacco control initiatives.

He said, “To cope with the said issue, the model of such countries can be followed where domestic funding mechanisms were established to support tobacco control – Thailand Government has introduced ‘Thai Health Promotion Foundation’. It is funded by a dedicated surcharge on tobacco and alcohol taxes. The said foundation is playing a key role in controlling tobacco usage and is also funding various public health programs”.

Quoting the example of Australian Government, Ali Wasif Naqvi said, “they spare a portion of tax-revenue for public health especially tobacco usage control. Brazil is also an example to dedicate a part of the tax revenue to fund the National cancer institute and tobacco control programs. It resulted in a great decline in smoking rate over the last two decades”.

He said that Pakistan must replicate the global examples to improve its its tobacco control programmes. The funding extracted from the tobacco tax revenues can be used in various activities related to better control on tobacco usage, related medical issues, awareness campaigns, reducing smoke initiation, to promote cessation and related services, improvement of tobacco control laws, sales to minors, smoke free public places, and to monitor the tobacco industry’s tactics to undermine regulations.

Ali Wasif said, “In addition to direct tobacco control efforts, some portion of tobacco tax revenue can also be allocated to the broader health sector to improve the overall public health and wellbeing”.

He said that some Critics may argue that dedicating funds to tobacco control from tax revenues may reduce the flexibility of government spending. However, the long-term economic benefits of reducing tobacco consumption far outweigh the initial costs.

He said, “The World Bank estimates that countries with comprehensive tobacco control policies see a net positive economic impact due to lower healthcare costs, increased productivity, and a healthier workforce”.

It is high time for Pakistan to take ownership of its tobacco control efforts by establishing a sustainable funding mechanism sourced from tobacco taxes. It is necessary for healthier and productive future generations, added Syed Ali Wasif Naqvi.

Credit: Independent News Pakistan