ISLAMABAD – Ulema and health experts have urged government to increase taxes on unhealthy sweet drinks in Finance Bill 2024-25 instead of taxing stationary and basic necessities of life. Pakistan is grappling with a severe crisis of non-communicable diseases, with millions suffering from diabetes, obesity, heart disease, kidney ailments, and certain types of cancers. 60% of deaths in Pakistan are caused by these non-communicable diseases. The consumption of sweet drinks including carbonated drinks, juices, iced teas, and flavored milk is among the major contributing factors to this national health emergency.
One small glass of sweet drink contains 7 to 8 teaspoons of sugar. Increasing taxes on these drinks is first and most effective evidence based policy option to reduce their consumption. Ulema have great respect in our society. They shall play their role to educate public on health harms of sweet drinks and demand government to increase taxes on these drinks to save public health. This was said by health experts in an event with religious leaders organized by PANAH at a local hotel on Wednesday here. Col. Dr. Shakeel Ahmed Mirza said that research indicates that sweet drinks including juices are among the major causes of obesity, type-2 diabetes, heart diseases, various cancers, and liver and kidney ailments. These diseases are increasing at an alarming rate in Pakistan.
The International Diabetes Federation (IDF) reports that 33 million people in Pakistan are living with diabetes. Another 10 million are pre-diabetic. More than 1,100 people are dying daily due diabetes and its complications. In 2021, the annual cost of managing diabetes in Pakistan was $2,640 million which is double than the expected installment from IMF. CEO Heartfile Dr. Saba Amjad said that increasing taxes on these drinks is first and most effective policy action to reduce their consumption. More than 106 countries and states in the world have increased taxes on these drinks and reduced the disease burden. Referring to a modeling study of the World Bank about Pakistan, he said that a 50% FED on sugary drinks will have a health gain of 8,500 DALYs, will generate an economic value of health impact of USD 8.9M and will have an average tax revenue of USD 810M for next 10 years.
Government shall allocate this revenue fully or partially for public health programs. “A country with more than 1100 people dying daily due to diabetes and its complications, over 300 limbs removed every day and the beverage industry is negotiating with Pakistani Finance Minister and Chairman FBR to reduce taxes on juices,” said Sana Ullah Ghumman, General Secretary PANAH. He added that the beverage industry has low taxes in Pakistan as compared to many countries regionally and globally. For example, Saudi Arabia, Qatar, Oman, UAE and other gulf states have imposed 50% excise duty on sodas and 100% on energy drinks. India has 40% tax on sweet drinks. Maldives imposed $2.25 levy on each liter of beverage.
Government must prioritize public health over corporate interest and increase taxes on sweet drinks in Finance Bill 2024-25. Dr. Quyyam Awan, senior executive vice president PANAH said that Ulema have a great respect in society and people follow them. He urged Ulema to play their role in educating public on health harms of sweet drinks and demand policymakers to take immediate policy action to reduce their consumption. Ulema in their speeches assured that they will use their platform to educate public on health harms of sweet drinks. They emphasized government to increase taxes on these unhealthy drinks instead to taxing stationary and other basic necessities of life.
