The PTI-led federal government of Pakistan has finally approved and announced to impose a health tax on cigarettes and other carbonated drinks in the budget for FY 2019-20.
As per the details, the government has decided to impose a tax of Rs 10 on a pack of 20 cigarettes. On the other hand, a tax of Rs 1 on a 250-milliliter bottle of carbonated drinks has also been approved by the federal government, an aide to PM said.
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The details said that the health tax will be imposed in the federal budget for the fiscal year of 2019-20. Babar Bin Atta, a focal person to PM for Tobacco Control has confirmed that the government is going to impose health tax.
He further added that the amount generated from the health tax will be spent on the poor people of the county through the health card scheme.
“It is the first instance in the history of Pakistan that a health tax is been imposed by the government to discourage the use of tobacco,” Mr. Atta said. “The amount that the government would generate through the health tax will be approximately Rs 40-50 billion,” he added.
He further said that the federal government has taken a courageous decision to impose the health tax and it could not be blackmailed by the tobacco merchants.