Efficacy of Sin Tax and Recommendations for Implementation of Tobacco Tax Regimen in Pakistan

Saqib Munir (), Khawaja Zeeshan Waheed () and Muhammad Shakeel ()
Additional contact information
Saqib Munir: PhD, Department of Economics, Shah Abdul Latif University, Khairpur, Sindh, Pakistan
Khawaja Zeeshan Waheed: PhD Scholar, Department of Management Sciences, Capital University of Science and Technology, Islamabad, Pakistan
Muhammad Shakeel: Lecturer, Department of Management Sciences, National University of Science & Technology (NUST), Islamabad, Pakistan

iRASD Journal of Economics, 2022, vol. 4, issue 2, 232-242

Abstract: Behavioural economics is a comparatively recent topic that challenges the mainstream economics’ basic assumptions. It emphasizes that humans aren't always rational, aren't always self-interested, and don't always have time-consistent preferences. A sin tax is a type of sumptuary tax that is imposed on some typically socially prohibited items and services, like liquor, cigarettes, SSBs, and gambling. Sumptuary taxes, which are a type of sumptuary regulation, are presumably meant to reduce transactions involving something that society finds undesirable. Tobacco usage continues to be one of Pakistan's most pressing development concerns. Tobacco products usage is the foremost reason of death from non-communicable diseases (NCDs), such as cancer, lingering breathing illnesses, and cardio vascular diseases (CVDs). Tobacco taxation, which is widely recognized as a fundamental component of tobacco regulating policy, is utilized in Pakistan to combat tobacco use with the dual goals of public health promotion and income collection. Behind the scenes, the tobacco industry's success is based on a lack of understanding of real economics. Despite the fact that tobacco usage is linked to a number of negative health outcomes, higher health costs, and overworked health systems, the tax incomes it creates often encourage policy inertia in low-income countries like Pakistan. It is important that while taxing the sin of tobacco consumption the basic goal should be discouraging the behaviour and not income generation.

Keywords: Sin Tax; Tobacco; Tax Regimen; Pakistan (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.internationalrasd.org/index.php/joe/article/view/734/443 (application/pdf)
https://journals.internationalrasd.org/index.php/joe/article/view/734 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ani:irdjoe:v:4:y:2022:i:2:p:232-242

DOI: 10.52131/joe.2022.0402.0075

Access Statistics for this article

More articles in iRASD Journal of Economics from International Research Alliance for Sustainable Development (iRASD)
Bibliographic data for series maintained by Dr. Muhammad Abrar ul Haq ().