Islamabad, April 23, 2024 – In a significant meeting held at the Federal Board of Revenue (FBR) headquarters on Tuesday, FBR officials and representatives from the World Health Organization (WHO) gathered to discuss the future of tobacco taxation and enforcement in Pakistan.
The meeting was marked by the presence of the FBR Chairman Malik Amjed Zubair Tiwana and included key members from both organizations, such as Roberto Iglesias, a consultant from WHO, and Santiago Carrillo, an expert in the Track & Trace system. Member IR (Operations) Mir Badshah Khan Wazir also played a pivotal role in the discussions.
The primary focus of the dialogue revolved around enhancing the effectiveness of the current tobacco tax framework to counter the illicit trade of tobacco products in the country. Pakistan has been facing significant challenges with the smuggling and illegal distribution of tobacco, which not only affects public health but also undermines tax revenues.
Roberto Iglesias expressed his concerns over the health impacts of unregulated tobacco products, which are often accessible at much lower prices due to tax evasion. Santiago Carrillo introduced potential enhancements to the existing Track & Trace System, a technology designed to ensure the legal sale of tobacco products and help in the crackdown on contraband items. He highlighted how implementing a robust system could substantially decrease the market share of illicit tobacco products by making it easier to monitor and control the supply chain.
Chairman Tiwana acknowledged the complexities involved in the enforcement of tobacco taxes and the operation of the Track & Trace System. He reiterated the FBR’s commitment to reforming the tax structure and improving enforcement mechanisms. “Our goal is not only to curb illegal tobacco trade but also to ensure that tobacco taxation contributes positively to the nation’s economy and health sector,” Tiwana explained.
The discussions also touched upon the broader implications of tobacco tax policies, including their potential to fund public health initiatives. By increasing taxes on tobacco products, the government could generate additional revenue, which could be allocated towards enhancing healthcare services and funding anti-smoking campaigns.
The meeting concluded with a mutual agreement to enhance collaboration between the FBR and WHO. Both parties committed to working closely to address the identified challenges and to explore further avenues for policy improvements that could lead to more effective tobacco control measures in Pakistan.
