Senate Chairman Sadiq Sanjrani has asked Standing Committee on Finance explore as to why federal excise duty on cigarette was not increased by the authorities in violation of the recommendation of the federal cabinet and the health ministry.
Barrister Mohammad Ali Saif raised the issue in the Senate and said the FED on cigarettes in Pakistan is very low, adding that the powerful multinational tobacco companies are a stumbling blocks in the way of increasing it. He said the matter amounts to a criminal negligence and be referred to the standing committee where FBR and health ministry officials should be questioned about actions taken by them. He also urged Senate chairman to probe the matter further as government officials were allegedly working hand in glove with the multinational tobacco companies. Multinational companies have very strong tentacles and those who raise their voice against them face the music, he went on the say. “I’m sure I will soon receive a notice form the FBR after speaking on the issue. I will share that with you when I get one,” he added.
Barrister Saif said that the government collected revenue of Rs 90 billion from the industry with FED rate of 17.5% during 2012-13. The government collected Rs 110 billion when the rate was increased to 33% in 2018-19. There are reports that multinational companies are themselves involved in smuggling of cigarettes which is inflicting a loss of over Rs 25 billion to the national exchequer every year, he said. The senator referred to a report of the Pakistan National Heart Association (PNHA) and said more than 153,000 people die every year in Pakistan because of tobacco consumption. At least 10.7 percent young adults are smokers despite the fact cigarettes are the cause behind 11 per cent deaths, he said.
“Use of cigarette is much bigger an issue than what we are facing in these days in the form of coronavirus,” he said, adding that Pakistan is a signatory to Framework Convention on Tobacco Control under which the government is supposed to discourage tobacco consumption in the country by increasing taxes and prices.
