Economic Reporter :
National Board of Revenue (NBR) suggested for upcoming budget not to change the tax on high and premium tire cigarettes and smokeless tobaccos like gul and zarda. Such a proposal awfully goes against the public health, say anti-tobacco activists.
To the rights groups, per capita income has increased by 9.27 percent in current year than previous. In such condition, keeping the tobacco product prices unchanged will make the products more available to the consumers.
Moreover, if the VAT rate is reduced to 12/13 percent from existing 15 percent, such tobacco products will be cheaper too. The proposal also has suggested to create another new price slab with existing 3 slabs which was supposed to be cut down to reduce complexity.
Two fresh slabs have been created, naming- locally manufactured cigarettes and international company manufactured cigarettes, by breaking down the low slab.
Besides, the old and complex taxation method-ad valorem is also prevailing. Proposals from anti-tobacco platforms about specific tax system are also rejected. Even there is no slightest reflection of the Prime Minister’s pledge, made in 2016, about a simplified and effective tobacco tax system.
The tax rate for zarda and gul is the same. But about 50 percent of total tobacco consumers use smokeless tobacco and a notable percentage of them are women and low-income people.
