![Capital Calling denounces illicit trade, demands tax raise on tobacco](https://photo-cdn.urdupoint.com/media/2024/05/_2/740x404/pic_1716993812.jpg)
Capital Calling Denounces Illicit Trade, Demands Tax Raise On Tobacco
Abdullah Hussain (@Abdulla99267510) Published May 29, 2024 | 07:43 PM
![Capital Calling denounces illicit trade, demands tax raise on tobacco](https://photo-cdn.urdupoint.com/media/2024/05/_2/740x404/pic_1716993812.jpg)
Dr. Hassan Shehzad says IMF proposal for uniformed tax on cigarettes rational.
ISLAMABAD: (UrduPoint/UrduPoint / Pakistan Point News-May 29th, 2024) Capital Calling, an Islamabad-based think tank, has Appreciated the reports suggesting that the International Monitory Fund (IMF) has remained steadfast in its recommendation for uniformed tax on tobacco products regardless of their national or foreign branding.
It said that the reports about recommendation for over 20 percent tax raise on tobacco products are encouraging. Dr. Hassan Shehzad, from International Islamic University, said estimates show that tobacco industry can do good with 40 percent tax raise in the coming budget.
Dr Shehzad, the only social researcher whose report was referred to by the IMF in its recommendations for tax reforms, says that copious research reports have found that if cigarette price increases its demand decreases. He said that during a survey of the major cities of the country, it was found that one in 94 smokers had quitted smoking after its price increase.
He said rise in illicit trade is another cause of concern. He expressed shock on the findings of the World Health Organization (WHO) stating that “illicit trade market in Pakistan (of tobacco products) ranges from 9 to17 percent of the total cigarette market."
The study is titled “Study on Incidence of Illicit trade of cigarettes in Pakistan: A case study for Islamabad Capital Territory".
The disturbing findings if the study is that “Overall, the illicit trade of cigarettes in Pakistan accounted for 23.1% of the total trade. Locally produced cigarettes without a stamp of the tax authority are considered illicit products and account for 10.4% of the total number of packs.”
Prof Muhammad Zaman, head of Zaman Research Center at Quaid-i-Azam University, says in a discussion of researchers that in a recent meeting of WHO titled "Global meeting to combat illicit tobacco trade concludes with decisive action", it was presented that "Illicit trade accounts for about 11% of total global tobacco trade, and its elimination could increase global tax revenues by an estimated US$ 47.4 billion annually."
Hence, he said, the volume of illicit trade in Pakistan is double than global average. He also said that the government should take corrective measures to stop this practice. He said the multinational cigarette companies that operate in Pakistan have been found involved in many illegal activities in different parts of the world. One of the companies was recently fined heavily for such practices in its home country, he said.
He said both the illicit trade and lower taxes on tobacco products are playing havoc with public health. The government should work on both these points at the earliest, he said.
Related Topics
Recent Stories
![Cricket: England v West Indies 3rd Test scoreboard](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019914.jpg)
Cricket: England v West Indies 3rd Test scoreboard
![Finance minister briefs Chinese officials on refor ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019922.jpg)
Finance minister briefs Chinese officials on reform agenda, engagement with IMF
![Finland says Russian vessel violated its territori ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019912.jpg)
Finland says Russian vessel violated its territorial waters
![Olympic opening ceremony under way on River Seine](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019266.jpg)
Olympic opening ceremony under way on River Seine
![West Indies' treble strike rocks England in third ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019264.jpg)
West Indies' treble strike rocks England in third Test
![Ukraine court orders detention of suspect in murde ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019262.jpg)
Ukraine court orders detention of suspect in murder of nationalist ex-MP
![Long queues, ticketing problems ahead of Paris ope ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019015.jpg)
Long queues, ticketing problems ahead of Paris opening ceremony
![Rana Sanaullah Khan joins Paris 2024 Olympics inau ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019638.jpg)
Rana Sanaullah Khan joins Paris 2024 Olympics inauguration reception
![Glowing tributes mark 69th birthday of President Z ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019637.jpg)
Glowing tributes mark 69th birthday of President Zardari at Governor's House
![Players unaware of spying scandal as Canada Olympi ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019635.jpg)
Players unaware of spying scandal as Canada Olympic coach sent home: official
![Naqvi hails Pak women cricketers for going down fi ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019013.jpg)
Naqvi hails Pak women cricketers for going down fighting against SL
!['Sabotage' on French rail network before Olympics: ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019634.jpg)
'Sabotage' on French rail network before Olympics: What we know
More Stories From Business
-
Finance minister briefs Chinese officials on reform agenda, engagement with IMF
6 hours ago -
Chinese support for CPEC, development projects show deep love with Pakistan: Mushahid
6 hours ago -
G20 seeks common ground on taxing super-rich
6 hours ago -
Stocks rise as inflation data boosts rate cut hopes
7 hours ago -
Land of PSM to be used for establishment of SEZs: NA body told
9 hours ago -
European medicines watchdog rejects new Alzheimer's drug
9 hours ago
-
FBR committed to resolve taxpayer issues in KP, Chairman FBR assures Governor KP
11 hours ago -
Tanveer emphasizes role of SEZs in attracting investment
11 hours ago -
Russian central bank hikes key rate to fight inflation
11 hours ago -
SBP injects Rs9.545 trillion into market
11 hours ago -
PSX stays bearish, loses 439 points
11 hours ago -
US Fed's favored inflation measure cools further in June
12 hours ago