FBR Asked to Increase Taxes on Sugar-Sweetened Beverages

FBR Asked to Increase Taxes on Sugar-Sweetened Beverages

The International Diabetes Federation (IDF) has asked the government to double the taxes on Sugar-Sweetened Beverages (SSBs) in the forthcoming budget.

IDF maintains that it will help reduce the burden of diabetes and will also aid in preventing diabetes in the population.

In a joint letter to the Federal Board of Revenue (FBR) Chairman, the President of IDF, Prof. Andrew Boulton, and President-elect, Prof. Akhtar Hussain, said, “We would recommend serious consideration be given to increased taxation on sugar-sweetened beverages (SSBs). We support the request of the Diabetic Association of Pakistan to increase excise duty on SSBs to 20 percent and to broaden the category beyond its current definition to include juices, energy drinks, flavored milk, iced tea and other drinks sweetened with added sugars.”

The statement of the letter also informed that currently, approximately 19.4 million people are living with diabetes in Pakistan, and even this is said to be a conservative estimate. Furthermore, there are many more at a high risk of developing diabetes.

“Over the past year, the COVID-19 pandemic has hospitalized and claimed the lives of people living with diabetes disproportionately, underscoring the elevated risk from infectious diseases to people living with the condition,” the letter said.

The taxation applied to reduce the consumption of SSBs has proven to be a highly effective tool to reduce the burden of obesity and type-2 diabetes, the IDF officials insisted.

The letter stated that in countries like Pakistan, increases in taxes on SSBs would be highly effective, especially considering that more than a third of the adult population is either obese or overweight and therefore at an increased risk of diabetes and other health problems.

Diabetes also presents a significant threat to economic advancement, particularly in low and middle-income countries. Almost two-thirds (63 percent) of people with diabetes are of working age, the letter pointed out, adding that the life-changing complications of diabetes place a heavy burden on individuals, families, and economies.

The letter also mentioned a recent study of the consumption trends in Pakistan that shows SSBs constitute as much as 70 percent of non-alcoholic beverages consumed in Pakistan. The study also showed that this increased consumption is similar on different economic levels as well.

“We sincerely hope you will give serious consideration to our request to take action to prevent diabetes by responding positively to the proposal of the Diabetic Association of Pakistan to increase excise duty on a wide range of sugar sweetened beverages,” the letter said.

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