ISLAMABAD:The experts Wednesday called the Finance Minister and Federal Board of Revenue to increase a minimum 20 percent federal excise duty (FED) on sugar sweetened beverages to contain disease burden and generate healthy revenue amid financial crisis.
A pre-budget seminar “Importance of Fiscal Policies to curb Sugar Sweet Beverages” was organized by Pakistan National Heart Association (PANAH) in collaboration with Diabetic Association of Pakistan.
Speaking on the occasion, General Secretary (PANAH) Sanaullah Ghumman said that an increase in excise tax on sugar sweetened beverages (SSBs) could help Pakistan to fight non-communicable diseases (NCDs) and keep people healthy and alive.
“We are thankful to the International Diabetes Federation, Diabetic Association of Pakistan, National Commission on the Rights of Children, Federal Tax Ombudsman and all those who sent recommendations to the Finance Minister, Chairman FBR and other policy makers to increase excise tax on SSBS”, he added.
He urged Prime Minister Mian Shehbaz Sharif and Finance Minister Miftah Ismail to consider increasing tax on a wide range of SSBs including Sodas, Juices, energy drinks, flavored milk, iced teas and other sugary drinks.
Consultant Food Policy Program at Global Health Advocacy Incubator Munawar Hussain said the fiscal policies have an important role in setting priorities for public health and nutrition. He said that increasing taxes on sugary drinks and ultra-processed foods was an evidence based strategy to reduce their consumption, obesity, diabetes and other NCDs.
“World Bank has recently concluded the impact modeling of SSB tax in Pakistan. The study indicates that progressively increased excise taxes on a wide range of SSBs will mainly reduce diabetes in the country. It also indicates that the government can collect significantly high tax for next 10 years if FED is progressively increased on SSBs”.
Secretary General Diabetic Association of Pakistan (DAP) Professor Abdul Basit said over 400,000 people were dying every year due to diabetes or its complications in Pakistan. “Our Pakistanis spent more than 2.64 billion USD on diabetes during the year 2021 which is a significant threat to our economy. DAP, PANAH, WHO and other expert organizations are trying to sensitise policy makers for adopting emergency measures to curb diabetes in the country.”
The civil society and health experts hoped that the government would increase FED on a wide range of SSBs in the upcoming budget to be tabled in the National Assembly.