Lahore Federal government announced on Sunday the decision to add health tax on cigarettes and 250ml soft drinks for the 2019-20 budget.
Reports revealed that the Pakistan Tehreek-e-Insaf (PTI) government has also approved of the health tax which has been affirmed by Focal Person to Prime Minister Imran Khan on Polio Eradication Babar Atta.
According to Atta, the Rs20 pack of cigarettes will be imposed with Rs10 tax while a 250ml soft drink bottle will have a one-rupee tax imposed.
He further revealed that carbonated drinks will be also be imposed with a health tax while an official declaration will be included in the upcoming budget of 2019-20.
Moreover, he added that this is the first time that such decisions have been taken which are expected to draw in Rs40 to 50 billion resources which will be expended on the underprivileged through health cards.This is below the level in countries that have taken a comprehensive approach to reduce tobacco use, where excise taxes account for 70% or more of the retail price,” their report said.