Islamabad: A coalition of civil society organizations and health professionals including the Pakistan National Heart Association (PANAH), Heartfile, the Diabetic Association of Pakistan (DAP), Pakistan Kidney Patients Welfare Association (PKPA), Pakistan Medical Association (PMA- Islamabad Chapter) and several other healthy food policy advocates urged the Government to increase taxes on all sugary drinks to 50% in Finance Bill 2024-25.
“The beverage industry propaganda is baseless. The amount of pulp used in the entire beverage industry is friction to the total production of fruits in Pakistan. The matter of the fact is that regular consumption of these juices, poses significant health risks, particularly among children. “said General Dr. Masuood Ur Rehman Kiani, President Pakistan National Heart Association. “This high consumption of sugary drinks and juices not only threatens public health but also imposes a substantial negative impact on the national economy” he added.
In a joint statement by the coalition of health professionals and civil society activists, it highlights the severe health risks posed by sugary drinks including obesity, type-2 diabetes, and heart and kidney disease. The statement indicated that Diabetes is skyrocketing in Pakistan with over 33 million people living with diseases and every third adult Pakistan is estimated be a diabetic. If no immediate policy action taken, people living with diabetes are projected to rise to 62 million by 2045. Over 1,100 individuals dying daily from diabetes and its associated complications. The cost of managing diabetes was 2640 million USD in 2021.
A World Bank study in 2022 showed that a 50% increase in FED on all sugary drinks will bring health gain of 8500 DALYs, economic value of USD 8.9 million to Public health by reducing hospital expenditure and could generate USD 810 million in revenue annually over the next decade. Evidence from other countries demonstrates that such taxes reduce consumption of sugary drinks, ultimately reducing diseases and hospital expenditure, save lives and beneficial for the economy.
“Pakistan have low FED of 20% on sugary drink and 18 % sales tax. In contrast Saudi Arabia, Qatar, Oman, UAE and other gulf countries have imposed 50 percent excise on sugary drinks and 100 percent on energy drinks. In India the total tax on such drinks is 40 percent and Maldives have levy of USD 2.25 per letter of sweetened beverage” said Abdul Hafeez, former Commissioner at FBR.
“There is a strong public support for increasing taxes on sugary drinks. National opinion poll conducted by Pakistan Health Research council indicated that 78% people supported increasing tax on all types of sugary drinks including juices. The coalition of health professionals and civil society urged the policymakers to increase FED on all sugary drinks to 50 % and prioritize public health over the corporate interests. This policy shall help save thousands of the lives every year and reduce the burden on economy by reducing hospital expenditure.
