‘Sin tax’ on the anvil for cigarettes, sugary beverages
ISLAMABAD: After continued lobbying by civil society, Minister for National Health Services (NHS) Aamer Mehmood Kiani announced on Tuesday that soon a ‘sin tax’ will be imposed on cigarettes and sugary beverages.
Speaking at a public health conference at the Health Services Academy, Mr Kiani said that the PTI government was committed to increasing the health budget by five 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 0.6pc 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.
Talking to Dawn, 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 specifically 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.”
Replying to a question, Dr Hafeez explained that India imposes 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.
“We have not yet decided on the exact amount for a sin tax [in Pakistan],” he clarified, “but it will certainly be a handsome sum. Because of the new tax, the price of cigarettes will increase, making it more difficult for young people to buy them. Some 1,500 youngsters start smoking in Pakistan every day, and we want to reduce that number.”
The general secretary of the Pakistan National Heart Association (PANAH), Sanaullah Ghumman, told Dawn that his association had for many years been demanding the imposition of a sin tax.
“Recently, during a meeting with President Dr Arif Alvi, we again raised the issue of such a tax,” he elaborated. “The minister for health was also present at the meeting, and the president assured us that he would do what was possible. The proposal was floated during the tenure of the former government as well, but was unfortunately not implemented. And even now, I fear for its fate since it is difficult to take such a decision in the face of an influential tobacco industry.”
To contextualise, according to a report of the NHS Ministry that was published a few years ago, tobacco is the single largest cause of preventable illness and death. In Pakistan, it causes some 108,800 fatalities every year, ie 298 per day. The report emphasises that the consumption of tobacco will continually increase the country’s healthcare expenses, in addition to imposing huge costs in terms of human resource.
Published in Dawn, December 5th, 2018
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Comments (74) Closed
good
Coffee is not harmful to society, it has medical benefits actually, neither is sugar a poison. Where are our officials educated?
This government can not do anything right. By calling this Sin tax, you are implying that you get absokved by paying tax.
I am all up for health but this is an excuse to further tax the people.
How about a sin tax on bribery/corruption?
Logical, this is already being practiced in many developed countries. Better late than never.
Good move. Should be implemented immediately
Neither of these is a sin as such but it makes for good humor. However, the proponents of the term fail to realize the paradox it contains. Once tax is paid the "sin" becomes legitimate, that's the concept of taxation. This will be inconsistent with the concept of sin.
Bravo to the minister! Finally the long awaited sin tax is imposed. Other countries have already imposed such taxes to reduce the consumption of these determinants of non communicable diseases..
taxing sugary drinks and tobacco products is a good step. there should also be banned from schools, not available for sale within 100 meters of the school. for people complaining about what it is called, you need to focus onthe substance, not the label of the tax. millions die each year from tobacco, perhaps calling it a sin isnt so inappropriate.
Finally I been saying for years Pakistan should do that
As it is written, its an international term.. As per wiki "A sin tax is an excise or sales tax specifically levied on certain goods deemed harmful to society and individuals, for example alcohol and tobacco, candies, drugs, soft drinks, fast foods, coffee, sugar, gambling and pornography.,"
call it whatever you want but there needs to be a tax on tobacco and specially on high sugar drinks, Pakistan is facing a huge obesity and diabetes problem.
First of all I am have issue calling it a sin / gunah Tax. Are we running out of vocabulary in the PTI govt. When will the Oxford degree of IK come to the rescue. Secondly, look at the irony when you as a govt. are blatently adding taxes which is already taxed. Not that I am a smoker or endorse smoking in any way. I feel this govt. cannot bring out any thing positive just running behind peanuts like buffaloes, walls, and now tobacco. If you were so honest why dont you regulate tobacco industry. Why are we not of those who produce and export finest Tobacco. This is a direct message to the prime miniter: We all know that things are not as glittery as gold and when you touch anything its a mess. In all this draw your strength from your weakness. We have voted you to bring a positive change.
Though name is not appropriate, this is first right decision by this government, this tax should have been imposed long ago. Intention to increase health budget to 5%of GDP is also a positive direction, I wish they could actually achieve it.
Atleast 10 rypees tax for sugary drinks 5 rupee tax for oils and oily food.obesity tax on fast food and 100 ruppes on pack of cigarettes.its time we do it and spend on health care.people seeking treatment for cholestrol and diabetes should only be provided free treatment if they are improving.if not charge them.
"Sin Tax"! Is this an attempt to broaden the Tax Base?
Sin tax? What is this, 16th century already?
Just increase the tax slab for these products instead of making it out like you're saviours.
If we deal in US $ in all kind of luxury items why not cigarettes, alcohol and soft drinks? average US price of a peck of cigarette is 10 US $ equals to Rs 1400. Why can't we sell for Rs 1000 per peck at least any brand. Same goes to others. Go for it.
Sin tax must be levied on cigarettes & alcohol not on sugary beverages or foods...
To let the tobacco companies sell their products, collect revenue in the name of taxation and still calling it a "Sin tax " is quite a hypocrisy on part of any gov. Actually this does't bail out the gov of its original sin.
I am not against this taxation, was just highlighting the way how we juggle words to divert attention from the real issues.
Bravo!!!!
SIN tax?
Fast food and other junk food should also come under the sin tax
Great work. In Canada and Australia, cigarette pack costs around 15 dollars -+. Cost of production is not different from here. Therefore the remaining 10-12 dollars is just tax. Smoking should be discouraged and this is an excellent way to do it.
This kind of measures look great on the paper but ground reality is that it will only encourage the cheap and unhealthy products which are more dangerous to health. Poor people who are addicted of smoking will never quit smoking but will certainly look for cheap products of unauthorised and unstandardised companies.
Good . Also impose corruption tax on Gov officials who make money by asking to do job .
100% agree. Remove soda access from schoools, colleges and Universities. On otherhand impose same Sin Tax on juices which added additional sugar, so they don’t escape from their sins. Juices should have new labeling scheme like 100% juice, and others should have how much sugar or corn syrup added to add Sin Tax.
@Farhana Farooq, sugar is poison in some way and not good for health.
@Farhana Farooq, non-Genius > SUGAR is the new drug and cause of many serious disorders.
This gov is useless. Why don't they impose agriculture tax ?
Ban sale of loose cigarettes as well.
coffee is harmful ? Excess of everything is bad
@Farhana Farooq, You're right about coffee. However, sugar is poison.
The most abundant Sin is corruption. Therefore, a hefty Tax on Corruption must be clamped on it.
About time.
I also suggest tax on excessive spending on elaborate weddings, jewelry and luxury items, which many use as a status symbol to feel socially superior in this society.. Impose heavy taxes on SUVs, luxury cars, iPhones etc..
@Farhana Farooq, Processed sugar is extremely unhealthy, this is what the govt is targeting.
It's a great move.
@Patriotic 786, you mean corruption is legal if it is taxed
These taxes are in line with what happens in developed countries.. and should not be seen as just a tax rise!!
Don't start from zero as if the smokers are currently not paying any tax. Please rename the "existing duties and taxes" levied on cigarettes as "sin tax".
its good news. We have to make our society healthy. otherwise using hashes, drugs, weed will increase day by day. it should be 100 percent tax.
Criticising for the sake of criticism. People should know how prevalent cancer and other diseases have become. Seeing young schools kids smoking has be one a common sight. People who want to do drugs can't be stopped but government is right to increase taxes on such items.
@M Mirza, You are missing the point. By imposing taxes on sugary drinks, cigarettes and other similar items, the government is discouraging people from consuming these unhealthy substances, which are hamful to your health. The medical costs, the social costs as a result of deaths and cancers caused by smoking, clogged arteries by excessive sugar consumption and hight fat content items, is a cost the governemt ends up bearing as well. So, the heavy tax will make people think twice before buying an item so they can save themselves and their families from the eventual grief. Excessive drinking alcohol and soda is even discouraged in the West.
Why do some European countries charge heavy VAT on cigarette, which almost tirples the price of a pack of smokes? Do you know why even in the US, cigarette and alcohol advertisement is not allowed in newspapers, on public television or radio stations?
NYC has even imposed size limits on soft drinks, to discourage sugary soda consumption.
Excellent initiative and preventive measures to safeguard the health and well-being of the nation, especially youngsters. As such taxes are very common in other countries, so there shouldn't be any hue and cry over it.
Reservations with PTI leadership on certain issues aside, the good thing about this govt is that it's coming up with ideas and initiatives that were never thought about by previous governments. Their high thinking and innovative initiatives will hopefully put Pakisan on the right track to become a truly developing nation in the next few years.
With stronger accountability and indeminity, Cigarette companies have moved from the West to China and SouthAsia.
Pakistan needs to recognize the hogr price its civil society will bear through public hospital costs for those who smoke. Cigarette companies lure governments with employment and tax baits. It is not worth it.
Can I say like this. Sins are allowed after paying due taxes??
@Philosopher (from Japan), Your logic is convoluted.
Maybe you should consider a different Philosophy!??
What about taxing those who physically punish children. Parents and teachers.
sugar tax is good. They have depolyed it here in UK.
@Iqbal, When we know it is a sin, but still impose an extra tax on it, giving it a license to free run...Irony!!!!
@Salman, "What about taxing those who physically punish children. Parents and teachers."
You don't tax them, you send them to jail! It is called 'cruelty' that is punishable by law.
You are essentially suggesting, that these cruel people should be allowed to live freely, as long as they keep paying taxes and keep on abusing women and children, because they have the money to pay!?
What a ridiculous thinking!
This is a very good idea. Sugar salt fat and tobacco are kilers and should be taxed heavily
Rather than calling these ‘sin taxes’ we should be using health-surcharge.
What else can they do to generate some cash under the current circumstances in order to reinforce, consolidate, strengthen and sustain the crumbling economy of the Islamic Republic of Pakistan?
Interesting comments...wonder if the government can drop the prices on fruits products ..may be public will offer fresh juices than the soft drinks...
@fairplay, Govt has to balance right of people - and rights of multinational. Banning them makes no sense. Perhaps ask them to only provide some new smaller bottles in schools (instead of 125, maybe 40?)
Good, Govt. Should impost sin Tax on Niswar, that consumes Billion of Rupees in Pakistan
@Sameer,
You sound like people pay a lot of tax .. Tax in Pakistan is a joke .. Here in UK 40% of our salary is deducted in tax .. that is besides the 20% VAT we pay on everything along with Council Tax on houses paid monthly/yearly. Pakistan needs to match up to rest of the world if GoP want to stop IMF etc loans.
After Sin tax there will be 'Cos' tax too, and then Tan theta.
@Ahmed, lahore.true answer i agree with you
@Suchbaath, Tell us what you like so it can be taxed next, thanks for your support!
@Farhana Farooq, just look at the children awaiting liver transplants in the USA from consuming too much Coke, Pepsi, and other sugary drinks before making uninformed comments.
@Farhana Farooq, Nescafe instant coffee is mostly chemicals, and does not even contain 10 grams of coffee necessary to make a cup of coffee. it should be banned in.Pakistan.
@Shazia, agree, other commenters got lost in the words used.
@Ahmed, lahore, taxing tobacco and sugary drinks is a positive step, calling it negative is foolish.
@FAZ, agree.
We are all sinners we want food a roof over our heads healthcare education oxygen clean drinking water why not a tax on living.
@Humza, good suggestions. also can incent MNC to reduce percentage of sugar in the drinks.
@Farhana Farooq, White Sugar is very harmful, it's like poison to your body.
@Farhana Farooq, excess caffeine can be detrimental. The liberals who fondly ape everything western, are crying for what reason?
Slowly but surely inshallah we are getting there.
Is Pepsi included in the sin tax? Though it is most sugary than other soft drink. PM is boosting about $500 million investment from Pepsi.
Just impose sales tax and say it is to discourage purchase. By sin tax you are opening a Pandora box for other items like sugary tea for example and that is nationally addictive etcetera etcetera. In most countries its an easy way to increase taxes . The state comes across as very concerned about health and citizens. And one wonders than why they allow the manufacture in the first place and not nip it in the bud. Revenue from sales and taxes is the answer right from the days of the Prohibition even here in the US. So its revenue It would be obvious if the concern was for the citizen. It never is.
Comments (74) Closed
good
Coffee is not harmful to society, it has medical benefits actually, neither is sugar a poison. Where are our officials educated?
This government can not do anything right. By calling this Sin tax, you are implying that you get absokved by paying tax.
I am all up for health but this is an excuse to further tax the people.
How about a sin tax on bribery/corruption?
Logical, this is already being practiced in many developed countries. Better late than never.
Good move. Should be implemented immediately
Neither of these is a sin as such but it makes for good humor. However, the proponents of the term fail to realize the paradox it contains. Once tax is paid the "sin" becomes legitimate, that's the concept of taxation. This will be inconsistent with the concept of sin.
Bravo to the minister! Finally the long awaited sin tax is imposed. Other countries have already imposed such taxes to reduce the consumption of these determinants of non communicable diseases..
taxing sugary drinks and tobacco products is a good step. there should also be banned from schools, not available for sale within 100 meters of the school. for people complaining about what it is called, you need to focus onthe substance, not the label of the tax. millions die each year from tobacco, perhaps calling it a sin isnt so inappropriate.
Finally I been saying for years Pakistan should do that
As it is written, its an international term.. As per wiki "A sin tax is an excise or sales tax specifically levied on certain goods deemed harmful to society and individuals, for example alcohol and tobacco, candies, drugs, soft drinks, fast foods, coffee, sugar, gambling and pornography.,"
call it whatever you want but there needs to be a tax on tobacco and specially on high sugar drinks, Pakistan is facing a huge obesity and diabetes problem.
First of all I am have issue calling it a sin / gunah Tax. Are we running out of vocabulary in the PTI govt. When will the Oxford degree of IK come to the rescue. Secondly, look at the irony when you as a govt. are blatently adding taxes which is already taxed. Not that I am a smoker or endorse smoking in any way. I feel this govt. cannot bring out any thing positive just running behind peanuts like buffaloes, walls, and now tobacco. If you were so honest why dont you regulate tobacco industry. Why are we not of those who produce and export finest Tobacco. This is a direct message to the prime miniter: We all know that things are not as glittery as gold and when you touch anything its a mess. In all this draw your strength from your weakness. We have voted you to bring a positive change.
Though name is not appropriate, this is first right decision by this government, this tax should have been imposed long ago. Intention to increase health budget to 5%of GDP is also a positive direction, I wish they could actually achieve it.
Atleast 10 rypees tax for sugary drinks 5 rupee tax for oils and oily food.obesity tax on fast food and 100 ruppes on pack of cigarettes.its time we do it and spend on health care.people seeking treatment for cholestrol and diabetes should only be provided free treatment if they are improving.if not charge them.
"Sin Tax"! Is this an attempt to broaden the Tax Base?
Sin tax? What is this, 16th century already?
Just increase the tax slab for these products instead of making it out like you're saviours.
If we deal in US $ in all kind of luxury items why not cigarettes, alcohol and soft drinks? average US price of a peck of cigarette is 10 US $ equals to Rs 1400. Why can't we sell for Rs 1000 per peck at least any brand. Same goes to others. Go for it.
Sin tax must be levied on cigarettes & alcohol not on sugary beverages or foods...
To let the tobacco companies sell their products, collect revenue in the name of taxation and still calling it a "Sin tax " is quite a hypocrisy on part of any gov. Actually this does't bail out the gov of its original sin.
I am not against this taxation, was just highlighting the way how we juggle words to divert attention from the real issues.
Bravo!!!!
SIN tax?
Fast food and other junk food should also come under the sin tax
Great work. In Canada and Australia, cigarette pack costs around 15 dollars -+. Cost of production is not different from here. Therefore the remaining 10-12 dollars is just tax. Smoking should be discouraged and this is an excellent way to do it.
This kind of measures look great on the paper but ground reality is that it will only encourage the cheap and unhealthy products which are more dangerous to health. Poor people who are addicted of smoking will never quit smoking but will certainly look for cheap products of unauthorised and unstandardised companies.
Good . Also impose corruption tax on Gov officials who make money by asking to do job .
100% agree. Remove soda access from schoools, colleges and Universities. On otherhand impose same Sin Tax on juices which added additional sugar, so they don’t escape from their sins. Juices should have new labeling scheme like 100% juice, and others should have how much sugar or corn syrup added to add Sin Tax.
@Farhana Farooq, sugar is poison in some way and not good for health.
@Farhana Farooq, non-Genius > SUGAR is the new drug and cause of many serious disorders.
This gov is useless. Why don't they impose agriculture tax ?
Ban sale of loose cigarettes as well.
coffee is harmful ? Excess of everything is bad
@Farhana Farooq, You're right about coffee. However, sugar is poison.
The most abundant Sin is corruption. Therefore, a hefty Tax on Corruption must be clamped on it.
About time.
I also suggest tax on excessive spending on elaborate weddings, jewelry and luxury items, which many use as a status symbol to feel socially superior in this society.. Impose heavy taxes on SUVs, luxury cars, iPhones etc..
@Farhana Farooq, Processed sugar is extremely unhealthy, this is what the govt is targeting.
It's a great move.
@Patriotic 786, you mean corruption is legal if it is taxed
These taxes are in line with what happens in developed countries.. and should not be seen as just a tax rise!!
Don't start from zero as if the smokers are currently not paying any tax. Please rename the "existing duties and taxes" levied on cigarettes as "sin tax".
its good news. We have to make our society healthy. otherwise using hashes, drugs, weed will increase day by day. it should be 100 percent tax.
Criticising for the sake of criticism. People should know how prevalent cancer and other diseases have become. Seeing young schools kids smoking has be one a common sight. People who want to do drugs can't be stopped but government is right to increase taxes on such items.
@M Mirza, You are missing the point. By imposing taxes on sugary drinks, cigarettes and other similar items, the government is discouraging people from consuming these unhealthy substances, which are hamful to your health. The medical costs, the social costs as a result of deaths and cancers caused by smoking, clogged arteries by excessive sugar consumption and hight fat content items, is a cost the governemt ends up bearing as well. So, the heavy tax will make people think twice before buying an item so they can save themselves and their families from the eventual grief. Excessive drinking alcohol and soda is even discouraged in the West.
Why do some European countries charge heavy VAT on cigarette, which almost tirples the price of a pack of smokes? Do you know why even in the US, cigarette and alcohol advertisement is not allowed in newspapers, on public television or radio stations?
NYC has even imposed size limits on soft drinks, to discourage sugary soda consumption.
Excellent initiative and preventive measures to safeguard the health and well-being of the nation, especially youngsters. As such taxes are very common in other countries, so there shouldn't be any hue and cry over it.
Reservations with PTI leadership on certain issues aside, the good thing about this govt is that it's coming up with ideas and initiatives that were never thought about by previous governments. Their high thinking and innovative initiatives will hopefully put Pakisan on the right track to become a truly developing nation in the next few years.
With stronger accountability and indeminity, Cigarette companies have moved from the West to China and SouthAsia.
Pakistan needs to recognize the hogr price its civil society will bear through public hospital costs for those who smoke. Cigarette companies lure governments with employment and tax baits. It is not worth it.
Can I say like this. Sins are allowed after paying due taxes??
@Philosopher (from Japan), Your logic is convoluted.
Maybe you should consider a different Philosophy!??
What about taxing those who physically punish children. Parents and teachers.
sugar tax is good. They have depolyed it here in UK.
@Iqbal, When we know it is a sin, but still impose an extra tax on it, giving it a license to free run...Irony!!!!
@Salman, "What about taxing those who physically punish children. Parents and teachers."
You don't tax them, you send them to jail! It is called 'cruelty' that is punishable by law.
You are essentially suggesting, that these cruel people should be allowed to live freely, as long as they keep paying taxes and keep on abusing women and children, because they have the money to pay!?
What a ridiculous thinking!
This is a very good idea. Sugar salt fat and tobacco are kilers and should be taxed heavily
Rather than calling these ‘sin taxes’ we should be using health-surcharge.
What else can they do to generate some cash under the current circumstances in order to reinforce, consolidate, strengthen and sustain the crumbling economy of the Islamic Republic of Pakistan?
Interesting comments...wonder if the government can drop the prices on fruits products ..may be public will offer fresh juices than the soft drinks...
@fairplay, Govt has to balance right of people - and rights of multinational. Banning them makes no sense. Perhaps ask them to only provide some new smaller bottles in schools (instead of 125, maybe 40?)
Good, Govt. Should impost sin Tax on Niswar, that consumes Billion of Rupees in Pakistan
@Sameer,
You sound like people pay a lot of tax .. Tax in Pakistan is a joke .. Here in UK 40% of our salary is deducted in tax .. that is besides the 20% VAT we pay on everything along with Council Tax on houses paid monthly/yearly. Pakistan needs to match up to rest of the world if GoP want to stop IMF etc loans.
After Sin tax there will be 'Cos' tax too, and then Tan theta.
@Ahmed, lahore.true answer i agree with you
@Suchbaath, Tell us what you like so it can be taxed next, thanks for your support!
@Farhana Farooq, just look at the children awaiting liver transplants in the USA from consuming too much Coke, Pepsi, and other sugary drinks before making uninformed comments.
@Farhana Farooq, Nescafe instant coffee is mostly chemicals, and does not even contain 10 grams of coffee necessary to make a cup of coffee. it should be banned in.Pakistan.
@Shazia, agree, other commenters got lost in the words used.
@Ahmed, lahore, taxing tobacco and sugary drinks is a positive step, calling it negative is foolish.
@FAZ, agree.
We are all sinners we want food a roof over our heads healthcare education oxygen clean drinking water why not a tax on living.
@Humza, good suggestions. also can incent MNC to reduce percentage of sugar in the drinks.
@Farhana Farooq, White Sugar is very harmful, it's like poison to your body.
@Farhana Farooq, excess caffeine can be detrimental. The liberals who fondly ape everything western, are crying for what reason?
Slowly but surely inshallah we are getting there.
Is Pepsi included in the sin tax? Though it is most sugary than other soft drink. PM is boosting about $500 million investment from Pepsi.
Just impose sales tax and say it is to discourage purchase. By sin tax you are opening a Pandora box for other items like sugary tea for example and that is nationally addictive etcetera etcetera. In most countries its an easy way to increase taxes . The state comes across as very concerned about health and citizens. And one wonders than why they allow the manufacture in the first place and not nip it in the bud. Revenue from sales and taxes is the answer right from the days of the Prohibition even here in the US. So its revenue It would be obvious if the concern was for the citizen. It never is.