‘Sin Tax’ to be imposed on tobacco products in Pakistan

ISLAMABAD:- Pakistan government will be imposing a 'Sin Tax' on all tobacco products, which is most likely to increase cigarette prices. National Health Services Minister Aamer Mehmood Khan has announced on Tuesday that the government has decided to impose a 'sin tax' on all tobacco products.

While addressing the Annual Public Health Conference, the minister said that a 'sin tax' bill would be sent in the National Assembly. "According to that bill, taxes would be imposed on cigarettes and tobacco products", told the federal minster.

The minister further said, "Tax received from this would be spent on the youth including their human development and education." Pakistan would be following into the footsteps of the Philippines for imposing a sin tax on tobacco.

In 2017, the World Bank cited the sin tax reform in the Philippines as among the most successful tobacco taxation which not only helped in the increase of revenues for the country but also cut down on the number of smokers.

A sin tax is imposed on specific goods and services at the time of purchase that are considered harmful to society and individuals, for example alcohol, tobacco and gambling ventures. There are various countries, who have imposed sin tax on alcoholic items and on energy drinks.