Latest news with #tobaccotax
Free Malaysia Today
3 days ago
- Health
- Free Malaysia Today
Govt considering raising tobacco tax
Prime Minister Anwar Ibrahim said the proposal to increase the tobacco tax was in line with the government's commitment to public health and fiscal reform. (Bernama pic) PUTRAJAYA : The government is considering a proposal to increase the tobacco tax, says Prime Minister Anwar Ibrahim. Anwar, who is also the finance minister, said the proposal aligns with the government's commitment to public health and fiscal reform, particularly given the long-standing moratorium on tobacco tax hikes. Malaysia's tobacco tax currently accounts for 58.6% of retail prices. The country has no formal mechanism for periodic adjustments or revaluation of the rate, which was last increased in September 2014. 'I agree with the spirit of that proposal. I myself not only do not smoke, but also fully support anti-smoking campaigns,' he said in response to questions on whether the government may revise the tax in Budget 2026. According to the parliamentary calendar, Budget 2026 is scheduled to be tabled in the Dewan Rakyat on Oct 10. Anwar was speaking after attending a Budget 2026 engagement session here today. Last week, when announcing the 13th Malaysia Plan, Anwar said the government would broaden its 'pro-health' tax beyond sugary products to also cover tobacco, vapes and alcohol. He said the expanded tax framework aims not only to increase revenue, but more critically, to encourage behavioural change and curb the rising prevalence of non-communicable diseases (NCDs). NCDs, commonly associated with unhealthy lifestyles, include heart disease, stroke, diabetes and cancer. Anwar said healthcare remains a key government priority, noting that the public system is under growing strain from medical inflation, the dual burden of communicable and non-communicable diseases, and an ageing population.
Zawya
10-07-2025
- Health
- Zawya
Kenya on spot over missed tobacco taxation targets
Kenya is among the countries that have failed to maintain best-practice tobacco tax levels, missing a critical opportunity to reduce tobacco use, save lives and unlock new revenue for health financing. A report by the World Health Organisation (WHO) said that Kenya is among 20 countries that have either never reached or have since fallen below the threshold, where tobacco taxes account for at least 75 percent of the retail price of cigarettes; a benchmark regarded as the most effective tool for tobacco control. Kenya's tobacco tax share is between 70 percent and 74 percent of the retail price as of 2024, placing it within five percentage points of the WHO's recommended best-practice level of 75 percent. Best-practice tobacco taxation, as defined by the WHO, means that total taxes, including excise, value added tax, and other applicable levies, account for at least 75 percent of the retail price of the best-selling brand of cigarettes. Reaching this threshold represents a powerful alignment of financial and health policies and signals a government's commitment to deterring smoking, preventing disease, and reducing healthcare costs.'Of the 20 countries that have not maintained their previous achievement of a best-practice tax share, six are mentioned above as having a tax share between 70 percent and 74 percent in 2024... Kenya [is] among them...,' read the report. Other countries in this category are Australia, Colombia, Egypt, Germany, Jordan, Morocco, Sri Lanka, and South Sudan. Among the countries that have increased their efforts is Belarus, which raised its tobacco tax from 56.6 percent in 2022 to 76.9 percent in 2024, joining countries like Indonesia and Palau, which have achieved best-practice status. The WHO reports that, globally, 1.2 billion people now live in countries that have adopted best-practice tobacco taxes, including 128 million people in 24 of the world's largest cities. However, no Kenyan city has made it to that list. Internationally, countries like Côte d'Ivoire and Uzbekistan introduced reforms that elevated them to the top-performing category. Read: Cigarette companies lobby to stop higher taxes on tobacco"Taxing tobacco is one of the most cost-effective and impactful interventions governments can implement. It works, it saves lives, and it pays for itself. Every country has the power to protect its people from tobacco," said Dr Tedros Adhanom Ghebreyesus, WHO Director-General. Tobacco is a major risk factor for noncommunicable diseases (NCDs), such as cancer, heart disease, and chronic respiratory illnesses, which together account for more than a third of all deaths in Kenya. Despite having formally agreed to the WHO Framework Convention on Tobacco Control and established the Tobacco Control Act, Kenya's taxation policy is not strong enough. The absence of a strong tax regime keeps cigarette prices relatively low, especially for young people and low-income populations, where price sensitivity is highest. According to the WHO, a 10 percent price increase on tobacco products can lead to a five percent reduction in consumption in low- and middle-income countries, with an even stronger effect on youth. In 2023, Kenya collected an estimated Ksh20 billion (about $155 million) in tobacco excise tax revenue, while the Ministry of Health reports that Kenya loses approximately Ksh15 billion ($166 million) annually in direct healthcare expenses and productivity losses from tobacco-related illnesses. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Arab News
27-05-2025
- Business
- Arab News
WHO says Pakistan losing 164,000 lives, $2.5 billion annually due to ‘devasting impacts' of tobacco
KARACHI: The World Health Organization (WHO) warned on Tuesday Pakistan was losing 164,000 lives and approximately $2.5 billion annually due to the 'devastating impacts' of tobacco on public health, calling for urgent measures, including increased taxation, to save lives. As World No Tobacco Day, observed on 31 May, approaches, WHO said it was reaffirming its commitment to partnering with Pakistan to address the chronic health crisis caused by tobacco. 'WHO advocates for taxation to be used as a tool to reduce consumption while increasing revenues that can be directed toward health and development priorities,' a statement from the global health body said. 'Without additional measures, the harmful impact of tobacco on public health and the national economy will continue to jeopardize Pakistan's efforts to advance the 2030 Agenda and its Sustainable Development Goals (SDGs).' Research has shown that tobacco taxation is effective in increasing revenues for the government while also reducing consumption, tobacco-related diseases and pressure on health systems. In 2023, following a tax increase on tobacco products in Pakistan, tobacco use declined by 19.2 percent with 26.3 percent of smokers cutting down on cigarette consumption. Revenue collection from the federal excise duty on cigarettes increased by 66 percent from Rs142 billion in 2022–23 to Rs237 billion in 2023–24. In Pakistan, federal excise duty rates on cigarettes have not increased since February 2023, making them more affordable, and taxation levels remain below WHO's recommended 75 percent of the retail price. Pakistan ratified the World Health Organization Framework Convention on Tobacco Control (WHO FCTC) in 2004, and WHO provides continuous technical support to the Ministry of National Health Services Regulations and Coordination and the Federal Board of Revenue in areas such as tobacco tax policy and track-and-trace implementation. 'There is no such thing as a safe tobacco product. Tobacco is a devastating burden on public health, for the economy, for our children and for our grandchildren. Tobacco kills up to half of its users who don't quit, overstretches health systems and also harms non-smokers in our communities and families,' said WHO Representative in Pakistan Dr. Dapeng Luo. 'Make no mistake, all tobacco products on the marke, without exception, are extremely toxic and dangerous.'
