The Economic Coordination Committee (ECC) has instructed the Ministry of Health to re-assess the imposition of health tax on tobacco and sugary drinks before the next budget.

The Ministry of Health had previously proposed to the ECC to introduce a Health tax of 10 rupees for a pack of 20 cigarettes and 1 rupee tax on 250 ml sugar-containing drink.

ECC also called for the submission of the 2021 federal health tax bill to harmonize legislation regarding the collection and collection of taxes on the sale and consumption of certain goods that are harmful to society and individuals. However, the proposal was postponed on the recommendation of the ECC Subcommittee.

According to FBR tax records, additional revenue from increased sales of cigarettes, soft drinks and sugar confectionery in the 2019-20 fiscal year (FY20) amounted to 33 billion rupees.

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