Govt planning to impose health tax on cigarettes and cold drinks

The federal government is planning to declare cigarettes and carbonated beverages, ie cold drinks, injurious to health and is preparing to impose a health tax of Rs10 on a pack of 20 cigarettes and Rs1 on a 250 ml cold drink.

Prime Minister Imran Khan has also the charge of Minister for Medical Regulation. The federal government wants to discourage cigarettes and carbonated beverages, declaring them to be unhealthy. In this regard, there are plans to impose health tax on 50 paisa per cigarette and one rupee per 250 ml cold drink.

A summary was sent to the Economic Co-ordination Committee (ECC). The Cabinet’s Economic Co-ordination Committee has postponed consideration of a summary of unhealthy taxes on beverages and tobacco. The ECC meeting failed to consider any of the 10-point agenda.

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According to a notification issued by the Cabinet Division, Federal Minister for Economic Affairs Omar Ayub Khan has been made the new chairman of the Economic Coordination Committee. The 12-member ECC includes communications and energy ministers. Minister for Industry and Production, Interior, Law and Justice, Maritime Affairs are also involved. The ECC also includes ministers for food security, planning, privatization, railways and water resources.

A meeting of the ECC was held under the chairmanship of Omar Ayub. The ECC meeting was to consider a 10-point agenda to consider imposing a new tax on beverages, but Omar Ayub Khan briefed the meeting only on the ECC.

The 10-point agenda proposed a tax on unhealthy sweet drinks and tobacco. However, at the next meeting of the Economic Co-ordination Committee, the federal government will declare cigarettes and cold drinks injurious to health and consider the summary of imposition of Rs1 health tax on 250 ml soft drink bottle.