SPARC Issues Alert on Unlawful Price Reduction of Tobacco Products

SPARC Issues Alert on Unlawful Price Reduction of Tobacco Products. The Society for the Protection of the Rights of the Child (SPARC) has called for immediate action following the unauthorized reduction in cigarette prices by a prominent and leading tobacco brand. The company has drastically lowered its prices from Rs. 483 to Rs. 283. This move not only violates existing tobacco control laws but also poses a severe threat to public health, particularly targeting youth and minors.

Previously, at the price of Rs. 483, the company paid approximately Rs. 74 in taxes per pack. With the new price of Rs. 283, they are now paying only Rs. 43 in taxes – a reduction of Rs. 32 per pack. This decrease significantly impacts the country’s economy, as it results in a substantial reduction in tax revenue.

The tobacco industry, in response to rising cigarette prices, reduces prices to lower their tax liabilities, leading to increased consumption. This not only undermines tax collection but also exacerbates public health risks, particularly in a country already burdened by economic challenges.

According to 2015 estimates, Pakistan’s health cost burden from tobacco use was Rs. 615 billion, a figure that will likely increase if cigarette prices continue to drop.

This price reduction is also a violation of the Federal Excise Act, 2005, which clearly stipulates that no cigarette manufacturer shall reduce the retail price below the level established on the day of the latest budget announcement.

SPARC Urges Appropriate Penalties

Dr. Khalil Ahmad, Program Manager at SPARC, has strongly condemned the actions of Benson & Hedges, stating, “The unlawful reduction of cigarette prices by such companies represents not only a blatant disregard for tobacco control laws but also a dangerous tactic that could lead to higher rates of tobacco use among younger individuals. This deliberate act makes it easier for youth to start using addictive tobacco products, which can have severe and long-lasting health consequences.”

In light of this violation, SPARC calls upon the relevant ministries and other regulatory bodies to take immediate and decisive action on this matter as soon as possible. An urgent investigation into the unlawful price reduction is necessary to ensure that tobacco control laws are strictly enforced. SPARC urges the authorities to impose appropriate penalties on these companies and to take measures to prevent similar violations in the future.

As SPARC Issues Alert on Unlawful Price Reduction of Tobacco Products. The Program Manager – Dr. Khalil Ahmad lastly said that there is an urgent need for enhanced regulatory oversight to address and counteract the tactics employed by tobacco companies to target vulnerable populations. Strengthening enforcement mechanisms are crucial to ensure public health and ensuring the effectiveness of tobacco control policies.