Government of Pakistan has announced to impose sin tax on cigarettes and tobacco products.
Federal Minister for National Health Services Aamer Mehmood Khan while addressing the Annual Public Health Conference revealed that: “We are sending a sin tax bill in the National Assembly in which taxes would be imposed on cigarettes and tobacco products.”He went on to add the accumulated tax would be invested on the youth in terms of their human development as well as in education. The notion of sin tax on products containing elements of tobacco, has also been materialized in Philippines, it was revealed.
A sin tax is an excise or sales tax specifically levied on certain goods deemed harmful to society and individuals, for example alcohol and tobacco, candies, drugs, soft drinks, fast foods, coffee, sugar, gambling and pornography. Two claimed purposes are usually used to argue for such taxes. In contrast to Pigovian taxes, which are to pay for the damage to society caused by these goods, sin taxes are used to increase the price in an effort to lower their use, or failing that, to increase and find new sources of revenue. Increasing a sin tax is often more popular than increasing other taxes. However, these taxes have often been criticized for burdening
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18 August, 2019