Govt Wants a Health Tax For Cigarettes and Soft Drinks

The Ministry of National Health Services will resubmit the case with regards to the imposition of a health levy on tobacco and sugar-sweetened beverages (SSBs) before the next budget. Sources told ProPakistani that the ministry on the recommendation of the Economic Coordination Committee (ECC) will present the case to impose a health tax of Rs. 10 on every pack of 20 cigarettes and Rs. 1 per 250ml of sugar-sweetened beverages. The Economic Coordination Committee (ECC) had postponed the plan to impose a health tax on cigarettes and sugar-sweetened beverages earlier this month. As per details, the Ministry of Health had also proposed the ECC to introduce a federal health contribution bill, 2021, to consolidate the law relating to the imposition, collection of the tax on the sale and consumption of certain goods which are harmful to society and individuals. However, the proposal was deferred on the recommendation of the Technical Advisory Committee. The Federal Board of Revenue (FBR) had collected Rs. 33 billion during the financial year 2019-20 (FY20) on account of an increase in Federal Excise Duty (FED) on cigarettes and carbonated, sugar-sweetened beverages.