SIN TAX IS SOON TO BE IMPOSED IN PAKISTAN, WHAT ACTUALLY IS SIN TAX?
There is a heavy cloud of taxes on our head, which we have to pay religiously on different things imposed by our government. There is only 0.3 percent of the population who pays tax and the rest of them have different ways to skip their tax payments. The government has levied huge direct and indirect taxes which is continuously increasing the burden more on poor which is making life more miserable for them.
Couple of days back, I read news that the Federal Minister for National Health Service Aamir Mehmood Kiani has said in a seminar that the government would soon impose a tax named as Sin Tax on the cigarettes and other tobacco products and sugary foods in Pakistan. This tax is a reasonable concept for the government to tax harmful things and it is a good initiative and is in our benefit because tobacco is the leading cause of health diseases in Pakistan and this is good that our government is seriously concern in taking strict measures to eliminate such hazardous products consumption but the same news came out as a night mere for all the smokers including the politicians and they expressed their insecurities on that.
However, the Sin Tax is not a Pakistani law to be forced on its people but it’s an internationally recognized term which is used as a tax on items considered harmful for human health, in this regard the government is taking a step in the health care sector by imposing Sin Tax or translated in Urdu as Gunnah Tax on smokers across the nation.
FACTS ABOUT SIN TAX
• Sin Tax is usually a term which refers to a tax that government impose on something in an effort to reduce the use of tobacco, cigarettes etc.
• Such type of tax is to raise revenue and to reduce the consumption of these things.
• It is good in a way that by making the dangerous things expensive, it will sell less.
COUNTRIES WHERE SIN TAX IS LEVIED
There are about 45 countries including the USA and the Uk , where this sin tax is levied. Last year the UAE began taxing cigarettes and soft drinks. India and Thailand have similar taxes that are embarked for health care services. Pakistan will follow the Philippines in imposing the tax on tobacco, the World Bank citied the tax in Philippines as the most successful taxation which increased the revenues for the country and also cut down the number of smokers.
WHY SIX TAX IS IMPORTANT FOR HEALTH
It is important to impose tax on some dangerous things because of high health risks associated with the use of such things like lung cancer due to smoking is the leading cause of death , heart conditions and obesity are some of the major causes these things may cause.
DISADVANTAGES OF SIN TAX
There are a few cons against the use of sin taxes.
• Sin taxes are regressive as they impose a burden on the poor than the rich because mostly people who smoke are poor.
• Sin taxes don’t work on everyone; some people will still smoke and use sugary foods because of their behavior and addiction.
• Some people may switch to more damaging substances when the taxes become too high.
• Sin taxes aren’t reliable source of long term income to the government.