Group calls for removal of incentives for locally-produced cigarettes

The Tobacco Free Association of Zambia has proposed that government should remove the current incentives for locally-produced cigarettes and cigarette products.

Its Executive Director, Brenda Chitindi, said government should also streamline the tax system to be uniform across all tobacco products in order to further enhance the advantages of excise tax increases.

Chitindi made the call in a statement issued in Lusaka on Monday.

She said implementing a specific excise tax structure that incorporates annual adjustments for inflation and income growth developments as recommended under the World Health Organization Framework Convention on Tobacco Control Article six guidelines will generate large health and economic gain for Zambia.

“The 2015 Addis Ababa Action Agenda on Financing for Development, supported by United Nations Member States, recognizes price and tax measures on tobacco as an important and underutilized revenue resource to finance national development efforts,” Chitindi said.

She said in Zambia, revenue from tobacco taxes can be directed towards bolstering the budgets of the Ministry of Health, National Cancer Hospital, National Heart Hospital and high referral specialist teaching hospitals, which currently operate with minimal funding.

Chitindi said Tobacco-related health expenditures cost the Zambian economy K2.8 Billion annually, equivalent to 1.2percent of the Gross Domestic Product (GDP).

She argued that increasing excise taxes on tobacco products was a highly effective measure to reduce tobacco use and generate government revenue for national development priorities.

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“While tobacco taxation alone may not fully offset the national debt, increasing tobacco excise taxes would ensure that the national resources are not spent on preventable health expenditures due to tobacco use,” Chitindi said.

She further said the enactment of a comprehensive Tobacco Control Act is crucial to safeguard the health and wealth of the country.

“By prioritizing these measures, Zambia can make significant progress in reducing tobacco use, improving public health, and advancing national development objectives,” Chitindi said.

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